There are five main mistakes first-time homebuyers can make. Here’s what you should avoid:
1. Talking to one lender. I highly recommend you talk to at least two lenders because many times different lenders have different programs available. Also, it’s good to compare the rates and fees they’re offering.
2. Using all their savings on a down payment. As a homebuyer, you have to take into consideration the money you’ll need for the home inspection, appraisal, and moving. Keep extra expenses in mind; don’t drain all the money in your savings account.
3. Applying for credit before closing. Many times the homebuyer is so excited to close on their new home that they want to buy new furniture or a refrigerator, for example, and they’ll apply for a store credit or credit card for those purchases. That is a colossal mistake because it can affect whether you qualify for loans.
Don’t drain all the money in your savings account.4. Not considering hidden costs. Maybe your utility bills are going to be higher than your previous residence, or there will possibly be unanticipated repairs needed. Also, you need to consider the maintenance of owning a house: lawn care, servicing HVAC units, and more.
5. Not working with a Realtor. A real estate agent will have your best interest in mind. They’ll be sure to negotiate the best price, that you’re buying in the right area for you, and they’ll know what’s best now for when you need to sell the property down the road. An agent is on your side and working for you.
If you have any questions about these homebuyer mistakes or real estate in general, please reach out to me via phone or email. I would love to help you.