Buying your first home is an exciting experience! With the property comes new possibilities and experiences for individuals and families. Yet before you start this chapter in your life, make sure you know the right steps to take and which ones to avoid.
Here are some common mistakes made by first-time homebuyers to keep in mind during your search.
Home Before Mortgage
Many homebuyers start looking for homes before getting a mortgage loan. Preapproval for a loan can save you time and help prevent the loss of your dream home to buyers who have already been approved.
Mortgage preapproval can also give you a more realistic idea of your budget, so you’re not looking at homes outside your price range. Buying a home that costs more than you can afford may put you at risk for future financial struggles – including foreclosure. Make sure to prioritize needs over wish-list amenities to avoid overspending.
Lack of Preparation
On the subject of mortgage loans, it’s important to be prepared for the process. Gather the necessary documentation, including tax returns, pay stubs and bank account statements, and make sure your credit report is accurate. Addressing any discrepancies before a lender makes a hard inquiry can help save you time and frustration.
Emotional Decisions
When searching for a new home, love at first sight can lead to rash decision-making. This large investment requires thought and should be taken seriously. Don’t move too fast and focus on staying within a budget you can afford.
Make sure to plan each step of the process to ensure you don’t miss any important factors. Preparation can also help relieve some of the stress that comes naturally with the homebuying experience.
Although challenging, it’s also crucial not to get too attached to a home before researching the neighborhood. You may enjoy all the features of a home but the surrounding community might not be what you desire. Make sure the neighborhood you’re moving into matches your culture, hobbies and interests!
Skipping Home Inspections
To save money, some new buyers choose to skip the home inspection before closing on a property. However, avoiding this step can end up costing you even more. The purpose of a home inspection is to identify any issues before you commit to purchasing. Buying a home without knowing the potential problems can result in you paying for large repairs down the line.
Home inspections are done by professionals who can spot issues we normally can’t with the naked eye. This includes mold, faulty wiring or other hazards that can be potentially dangerous or life-threatening.
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