6 Most Common First-Time Home Buyer Mistakes
Last Updated
March 4, 2020
How to Avoid and Prevent First-Time Home Buyer Mishaps
Are you ready to buy your first home? Thousands of people will become first-time homeowners this year, so you’re not alone. To help you along the way, we’ve outlined some of the most common errors and how to steer clear as you venture into the market.
6 Most Common First-Time Home Buyer Mistakes
1. Going with your first mortgage rate quote
It pays to compare offers, and this includes mortgages. Just like you’re shopping for a car, don’t go with the first offer, apply with multiple lenders and vet your best options carefully.
2. Not getting your credit score in shape
Do you know what your credit score is? There are plenty of free options and this is an important first step. Know what your credit score is and take action in boosting your score. Some ways you can do that include making payment on time, paying down revolving debts, and using your credit wisely.
3. Ignoring first-time home buyer programs, VA, and FHA loan programs
You probably don’t have a ton of money saved up for a down payment which is even more reason to explore what loan programs are out there including state programs that offer down payment assistance and competitive mortgage rates. Take some time to learn about these programs. Some of these programs include VA loans, USDA loans, and FHA loans. Speak with a professional that can help you find the best loan for you.
4. Paying too small of a down payment
This is one of the most common regrets millennial homeowners have. Overall, a bigger down payment lets you get a smaller mortgage giving you more affordable monthly house payment. Without emptying your savings, dedicate as much to the down payment as you can.
5. Shopping for a house before a mortgage
Too many buyers start by looking at homes they can’t afford. Avoid getting hopes up and talk to a mortgage professional about getting pre-qualified or pre-approved before you visit. This will help you understand what you can feasibly afford, and what the right price range is for finding the right home.
6. Forgetting about closing costs
First-time home buyers are frequently surprised by closing costs. Make sure you save and are prepared for closing, repair, and renovation costs so you’re not surprised. A good real estate agent can help you estimate how much you’ll pay and always get a second opinion from contractors.
Are you ready to make the first move?
Let us help you explore what options are out there for you and make your first-time home buying experience a success!
Did you know with Family First’s Homebuyer Dream Program you could get up to $15,000?