Being a first-time home buyer can be really exciting and a bit scary. You are entering into a world you are not familiar with where the end result is the largest single investment you will ever make in your life. You are buying the first home your family will own and you want it to be perfect. But in the quest for making the perfect buying decision, first-time home buyers often make mistakes that others should learn from.
Buying With Your Heart
Emotions will always play a role in buying that first home, but emotions should not be the reason you make a horrible investment. When you are looking at homes, always have a poker face that prevents the seller from realizing how much you want to buy the property. Always have the property looked over by a professional and have the contract reviewed fully before signing it.
Stay Within Your Means
When you figure out how much you can afford for a house, remember that there are more monthly costs than just the mortgage. You will have to deal with insurance, taxes, and maintenance. If the roof gets damaged, your insurance will cover it but you will still have to pay the deductible. Always leave a few hundred extra dollars a month for home ownership to go along with the actual cost of owning your home.
Skimping On The Down Payment
Some first-time home buyers put down as little as possible on their first home because they don’t understand the purpose of a down payment. The more you pay for the down payment, the less you pay each month on the mortgage and the less you accrue in interest charges as well. Always put as much as you can into the down payment.
Not Shopping For The Best Deal
As a first-time home buyer, you will have access to a lot of programs that could save you thousands of dollars. Not only does the federal government back mortgage programs through certified lenders, but some lenders have their own first-time home buyer programs to attract that special group of new buyer.
Ignoring Credit Reports
Every American consumer is entitled to one credit report from each of the three major reporting agencies every 12 months. You should take advantage of your free credit reports to correct errors, challenge accounts you don’t recognize, and get your credit profiles in the best possible shape.
Using Credit Before Getting Approved For Funding
Just because you have been pre-approved to buy Staten Island real estate does not mean that you can start adding credit cards to your profile and allowing your credit payments to lapse. Your pre-approval only becomes approved financing after you have selected the home you want and the lender runs your application through. If you have been adding to your credit profile while looking for a home, you might not get approved for your financing.
Not Getting Pre-Approved
Once you have made the decision to buy your first home, the temptation is to run out and start shopping. But if you do not first visit a lender to get pre-approved, then you will have no idea how much you can spend.
If you do your research and avoid the mistakes first-time home buyers often make, then you will find that your transaction will go much smoother and you will avoid problems that could linger for years.