Around 26 million Americans plan to buy a home in the next year, which means we should familiarize ourselves with common mistakes.
Knowing these errors will protect your investment and help you enjoy the buying process. But with so many potential issues, first-time buyers are vulnerable to making the same mistakes. Maybe that’s why you’re frantically searching for tips; you’re terrified about making these errors.
Sounds like you? Then, you’ve come to the right place. Here are the five home buyer mistakes to avoid.
1. Ignoring Your Budget
A major mistake you can make is ignoring your budget. When house hunting, refer to your finances to find a property that realistically aligns with what you can afford. Although it’s tempting to buy a luxurious home, if you can’t afford the upkeep, there’s a risk of foreclosure, which would be a disaster for you and your family.
2. Skipping Mortgage Pre-Approval
Don’t fall into the trap of searching for homes before having a mortgage approved. As a first time buyer, what you think you can afford may be different from a bank that disapproves of your poor credit or job instability.
To avoid disappointment, be pre-approved for a loan and then make the offer. Otherwise, you’ll be wasting the seller’s and your agent’s time, which makes the process far more stressful.
Further, first-time buyers don’t realize that you needn’t put down a 20% down payment. If you can, great, but most offer 6 to 12% as they don’t have enough funds. Note, waiting for 20% means you could spend years saving and wasting money on rent when you could own a place.
3. Not Using a Real Estate Agent
There’s no greater mistake than not working alongside a real estate agent. Hiring a realtor will give you peace of mind as they must act in your best interests and handle the huge pile of paperwork. Plus, a real estate agent can help you find more homes for sale.
4. Ignoring the Neighborhood
One of the top home buying mistakes is ignoring the neighborhood where your dream house is located. Take the time to find an area where your family can thrive, whether it’s near essential amenities or your little one’s school. To avoid future issues, research the area thoroughly and scope it out in the evening to check it’s safe.
5. Being Careless With Credit
When buying a home, having a clean credit report is a must. If not, you jeopardize getting a mortgage and landing your dream property. But you can prevent this by only using your current credit card and paying bills on time.
Top Home Buyer Mistakes To Avoid
Now, as you know the top home buyer mistakes to avoid, your first purchase will be a stress-free process.
Make sure you factor in your budget before house hunting and use a real estate agent for reassurance. First-time buyers should also be pre-approved for a mortgage and have a clean credit report. Good luck with finding your new home!
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