5 Pitfalls First-Time Homebuyers Should Avoid

When it comes to purchasing a home, there are dozens of things first-time homebuyers should avoid. From overpaying to rushing into the purchasing process, these big-ticket mess-ups are best routed around rather than navigated through.

5 Mistakes First-Time Homebuyers Shouldn’t Make

Buying a home is not a decision you want to charge into without covering your bases. Avoid the common pitfalls hasty first-time homebuyers make when buying your first home.

1. Assuming you can afford a home

Affording a mortgage payment is one thing. Affording a home is another. In addition to the mortgage payment itself, new homebuyers will also have to think about taxes, insurance, maintenance, and higher than usual utilities bills. For an unprepared first-time homebuyer, these things can add up quite quickly.

2. Not getting pre-approved for a loan

If you find a home you love, you’re liable to wind up disappointed unless you’ve applied for a loan already. Because home buying is a competitive process, it’s easy to get beat out for the home of your dreams if you haven’t take the time to apply for a mortgage before you began shopping. With this in mind, shop for a mortgage before you shop for a home.

3. Not hiring a real estate professional

A good realtor can make all the difference when it comes to engaging in a successful home purchasing adventure. Without the help of a realtor or other real estate professional, it can be difficult or impossible to find homes that interest you and navigate the difficult purchasing process.

4. Spending all of your savings on a down payment

Even if you have enough in your savings account to cover the down payment, you don’t want to blow the entire account on a single down payment. This puts you in a risky position that makes it difficult to accommodate unforeseen expenses down the road. It also makes it difficult or impossible to manage additional housing expenses. What’s more, people who deplete their savings like this often have a difficult time building it back up after the down payment is made.

5. Applying for additional loans after your mortgage loan

Great – you got your mortgage approved! Time to take it full circle by taking out another loan for that car you’ve always wanted, right? Wrong. Taking out loans after your mortgage loan is issued but before the sale has closed can place your closing at risk since it alters your financial profile. With this in mind, leave big-ticket loans and financial inquiries until well after your sale has closed.

For first-time homebuyers, navigating the waters of a home sale can be tricky. With the help of these tips, it’s simpler than it’s ever been before. By avoiding these five common mistakes and staying out of the hot water they create, it’s easy to secure a home you love at a price you can truly afford for the long-term.