There’s a lot of advice out there for what first-time homebuyers should do as they prepare to make their purchase, but what about the things they shouldn’t do? Today I’d like to share five common, but crucial, mistakes that first-time homebuyers should avoid.
1. Assuming it’s too early to get a pre-approval. The last thing you want to do is fall in love with a home you can’t afford. Getting pre-approved should be the first step you take in finding your first home.
2. Waiting to pull your credit until the last minute. Homebuyers need to have a thorough (and current) understanding of their financial situation before proceeding with a home purchase. Even if your credit was in good shape several months ago, don’t assume that it’s stayed the same since then.
3. Forgetting to include PMI when calculating your future mortgage payment. If you submit a down payment lower than 20%, chances are that you’ll accrue PMI (private mortgage insurance). With that in mind, neglecting to account for this additional cost could greatly skew what you expect to pay each month for your home.
4. Not saving money for closing costs. The price of the home itself isn’t the only figure you’ll need to save for when you make your purchase. There will also be a number of closing costs, like transfer fees and taxes, you’ll have to pay for at the end of the deal.
5. Not using an agent. Trying to go the home buying process alone could spell disaster for your deal. Partnering with an experienced real estate professional is the best way to make sure your deal goes smoothly. There’s so much more that goes into buying a home than simply finding one you like and then handing over the money to pay for it. A professional agent will guide you through each step, negotiate on your behalf, help you interpret paperwork, and much more.
If you have any other questions, would like more information, or are curious how our team can help you with your own home buying experience, feel free to give us a call or send us an email. We look forward to hearing from you soon.