While buying your first house is an exciting time and a big milestone, it’s important to keep in mind that there are some actions to avoid during the buying process. Here are some common but avoidable mistakes that first-time homebuyers sometimes make.
Skipping the Prequalified Process
When you decide to take the big step towards owning a home, the first thing you should do is to get prequalified. This process involves talking to an experienced loan officer about your credit, income, assets and debts. In return, you’ll get an estimate of how much you can afford to spend on a mortgage. This will save you time in the long run because you will only look at houses within your price range. Also, sellers are likely to prefer your offer over a buyer who is not prequalified, giving you more negotiating power.
Making a Big Purchase
Making a big purchase like a new car or even new furniture for your dream home before you get approved for your new mortgage can severely impact your total debt-to-income ratio and harm your chances for loan approval. So, no matter how badly you may want or need this new purchase, remember it should come secondary to your main goal of buying your new home.
Not Budgeting Appropriately
It’s not uncommon for first-time homebuyers to not fully understand the “cost” of homeownership. It’s more than just the price tag on a house and involves additional costs like private mortgage insurance, closing costs, property taxes, repairs, and maintenance costs. Take the time to ask about all these costs when you work with your loan officer!
Waiving the Home Inspection
Even though a home may look perfect on the surface, it could secretly have problems that are hard for the average eye to spot. Some buyers skip this step to save money, but it’s worth the time and money. The last thing you want is to buy your dream home, only to have to deal with the nightmare of costly problems down the road, like termites, structural issues or even mold.
If you’re thinking about buying a house, call one of our experienced loan officers today! We’re committed to showing you the way home.