Buying a home for the first time is certainly a thrilling endeavor and marks a significant milestone, but the reality isn’t always a white-picket fence and living the dream. The key to ensuring a smooth-sailing process is to have an idea of the usual mistakes first-timers make when buying a home and avoid them altogether!
Don’t spend too much of your valuable time daydreaming about what your perfect home would look like instead of the realities of searching for a home and getting the process started. So if you’re wondering what common first-time homebuyer mistakes to avoid are, below are some of the most common to steer clear of as you move forward in the homebuying process.
Hunting for Your Dream Home Without Applying for a Pre-Mortgage Approval
You may be surprised to hear that there is a lot more to buying a home than simply finding one that fits your needs and budget. In order to buy a home, you’ll need an initial down payment and cash for the closing costs. How can you afford this when you’ve purchased a home if you haven’t applied for a mortgage? Mortgage pre-approval determines the approximate amount you will be approved for as a loan based on your credit rating and debt-to-income ratio. Not to mention, it also increases your chances of establishing yourself as a legitimate buyer in the eyes of sellers.
Talking to Only One Lender and Jumping on the First Option Given to You
Deciding on a mortgage lender is extremely crucial because not all lenders are created equal. You may be thinking, “How many lender options are out there, anyway?” You might be surprised to hear that there are plenty of lenders to choose from, and who you choose to partner with is a decision that could save you big in the long run. Before you begin the application process, research your lender options to ensure you’re getting the best rate, fees, and terms for your needs. Don’t settle for the first option provided to you, as odds are you’ll find a better deal for you somewhere else.
Buying a House that Fits Your Entire Budget, Without Considering Other Associated Costs
Buying a home is about more than just the total price of the home. It’s about the entire cost of living in the home, including taxes, maintenance, and insurance. When you buy a home you’ll be responsible for paying property taxes and homeowner’s insurance. At closing, you’ll also need to come up with the funds for closing costs, which are fees that cover taxes, the title search, and other miscellaneous fees. You’ll need to make arrangements to pay for these costs as well. While these fees may not seem like an issue at the time, they can quickly add up and make it so that you have no money left over at the time of closing. Make sure that you are aware of these costs so that you can prepare to pay for them yourself.
The Importance of Understanding What You’re Getting Into Before Taking the Plunge as a First-Time Home Buyer
Buying a home is truly a rewarding experience in more ways than one. However, it’s important to weigh out your options before getting into such a major investment. There is no other endeavor in life that can put you in a more financial rut than ever before, so always consider the best way to approach your first steps as a would-be home buyer.
Are You Interested in Buying a Home in Arizona?
Mortgages by Misty offers first-time home buyer loans in Arizona, so if you need financial assistance in purchasing your home, contact us today to see how we can help make your homeowner’s dreams a reality!