Five Mistakes Most First-Time Homebuyers Make
Buying a home for the first time is an exciting moment in life. Because it is a big commitment, it is important that first-time homebuyers take their time through the house hunting process in order to make sure they do not make any critical mistakes that could cost them in more ways than one.
In order to avoid a financial crisis after buying a home, here are five mistakes to avoid:
Many first-time homebuyers purchase a home after they believe they can handle a mortgage payment. While that is important, many homebuyers do not take into account the added expenses a house brings with it. Expenses like taxes, insurance, maintenance costs, and even utilities can be unexpectedly high, putting many first-time homebuyers in the red.
Before making an offer on a house, take into account all the expenses included in owning a home. If the added cost is more than you have set aside, take some time to save a little more. While it means having to stay in your current situation for longer, you will be much happier down the road when you have financial security in your new home.
Many first-time homebuyers look for a house before getting prequalified for a mortgage. If you know beforehand the price range you have to work with, you can be sure you will find a house that fits your budget and your qualifications. However, if you search first, you could wind up falling in love with a house you can’t afford, which can lead to a whole mess of other problems.
Find out what you’ve been approved for first, then go house hunting. Also, a great way to keep an eye on the housing market is through your directv channel guide. Many news stations have segments on the housing market outlook, which can help you determine when is the best time to buy.
Many homebuyers seek homes without the aid of a realtor, for they believe they can do it alone. However, when it comes to writing an offer, it is important for homebuyers to have the help of a trusted realtor to ensure they are getting not only a fair price for the house, but are also not missing any crucial details from their offer that could financially hurt them later on.
Many people make the mistake of making large credit purchases too soon after purchasing a home, which can hurt your credit score. Even if you have been pre-approved for a loan, many lenders will check the status of your loan before the closing to ensure your financial state is the same as it was when the loan was originally approved. New loans and large purchases make your financial situation look unreliable, which can make loan offices rethink their loans.
When looking for your home, avoid these crucial mistakes.
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