Did you know there are over 1.7 million first-time homebuyers each year in the US?
Many people take the leap and purchase a house for the first time each year. But unfortunately, many of those people make mistakes along the way that can cost them money and cause frustrations down the line.
Keep reading to learn five first-time homebuyer mistakes you can avoid when it comes time for you to settle into a house.
1. Not Preparing Properly
Purchasing a house takes a lot more work than most people think. You’ll be asked for countless documents to prove your financial standing to any banks you work with throughout the process.
Preparing a green file, or a file of all your financial documents, ahead of time can save you time later and help prepare you for what’s to come later in the process.
2. Spending Too Much
One of the common mistakes when buying a home you definitely want to avoid is overspending. The bank might approve you for a loan that’s more than you can comfortably afford.
Try to establish a budget well before you start looking for homes and stick to that budget as closely as possible. Over time, you’ll be able to find something you love within your price point.
Many people spend over 30% of their total income on housing, which can make it difficult to focus on other bills/debt.
3. Skipping Pre-approval
The biggest mistake when buying a home for the first time is not getting pre-approved before you start looking at homes.
You might find the house of your dreams and lose out on it because someone else had their pre-approval, and you didn’t.
Getting pre-approved essentially means a bank is stating you’re qualified to receive a certain amount of funds. So this tells the buyer you’re serious, and things are much less likely to fall through, so you’re trustworthy too.
4. Thinking You Need to Put 20% Down
There’s a common misconception that you need to put 20% down to purchase a house. Unfortunately, it’s an untrue belief that can result in many people putting off buying a home for the first time because they don’t have the money.
5. Not Looking Into Grants/Aid
Many people know additional financial incentives are available but don’t take the time to look into them.
First-time homebuyer grants and financial aid can save you thousands of dollars overall! Missing out on this essentially free money is unwise. Working with a qualified agent can help you go through the process easily and know what you’re eligible for.
Avoid These Common First-Time Homebuyer Mistakes
There are countless first-time homebuyer mistakes people make because they don’t know better. Educating yourself before you jump into searching for homes is the best way to know all your options ahead of time.
It’s also essential to work with a qualified real estate agent who can walk you through the process and answer any lingering questions. So please get in touch with us to see how working with us makes the process simple.
Your dream house is waiting!