3 Common First Time Home Buyer Mistakes
Buying a first home is an exciting but often stressful process. But it doesn’t have to be. Your realtor will help guide you through the entire process and help you avoid some of these common mistakes.
Not Getting Pre-Approved
This is one of the most essential steps in the home buying process. A mortgage pre-approval is a document from your mortgage lender that shows you exactly how much you can afford. A pre-approval makes you very attractive to potential home sellers. This will also ensure that you only tour houses you can afford. Many first-time homebuyers may be tempted to tour homes that end up being outside of what they can afford. When that happens, they end up falling in love with a home outside their range, and they can sometimes become disillusioned with the home buying process altogether. Save yourself the heartache and have a pre-approval ready before you start looking at homes. If you need to find a trusted mortgage lender, I will be happy to connect you with someone who can help.
Emptying Their Savings
It can be tempting to jump right into the home buying process once you have enough money saved for a down payment, but this is not the best way to go - especially if you are buying a pre-owned property. You’ll want to have money saved for closing costs, moving costs, and repairs or upgrades for your new home.
Making a Big Change While Applying for a Mortgage
The time between applying for a mortgage and being approved is crucial! This is when your potential creditors will be digging into your financials and assessing your debt-to-income ratio. Anything that can affect your credit score will negatively affect the mortgage you are offered or even disqualify you from a mortgage altogether. This includes buying furniture on credit, buying a car, or opening a credit card. If you have questions about what could affect your credit - your realtor should help guide you.
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The good news is that you don’t have to do this alone - your realtor will be able to guide you through the entire process. If you think you are ready to start looking into purchasing your first home, contact me! I will walk you through the entire process.