As a first-time homebuyer looking to purchase a home, you probably don’t know what to expect. The home-buying process can be long and stressful, but we want to help make it as easy as possible.
Take a look at these six common home-buying mistakes and try to avoid them if you can throughout the process.
1. Not Starting The Loan Approval Process Early
One of the first things you should do early in the process is to get pre-approved with a lender. Getting pre-approved is the easiest way to determine how much you can spend on a home. Most real estate agents won’t even take you to see a home without a pre-approval letter, so it’s important to get it done so you can start looking at homes.
In addition, you also need to submit the pre-approval letter with your offer. So if you find a home you like and want to write an offer on it, you need the pre-approval letter.
2. Not Shopping Around For Lenders
Going along with getting pre-approved, you should also talk to a few different lenders. Different lenders and mortgage companies can offer deals and programs that others don’t have and can maybe even get you a lower mortgage rate.
3. Not Working With A Real Estate Agent
Especially as a first-time home buyer who may need help navigating the process, you should talk to multiple real estate agents and choose one to help you. Real estate agents offer experience in the current real estate market and can help you get a better deal than you could get on your own.
4. Waiving A Home Inspection
If you are in a multiple-offer situation, some real estate agents may ask you if you would like to waive your home inspection to make your offer stand out. In a seller’s market, this may be something to consider. However, we are currently in a market where buyers have a little more leverage, and home inspections provide valuable information about your home that you may not know without it.
5. Not Saving Enough Money
When it comes to buying a home, there are a lot of fees you may not know about that will need to be paid for. The big one is the down payment, but there are closing costs, homeowners insurance, and taxes, plus money that will be needed for utility bills, possible moving costs, and home maintenance.
6. Making A Large Purchase Before You Close
Last but not least, do not make any large purchases or open new credit lines before you close on a home. They can impact your mortgage total and rates and could delay your closing.
Ultimately, buying a home is an exciting time, but it can be easy to get lost if you don’t know what you’re doing. If you have any questions about the home-buying process, reach out to us! We would love to help!