Buying your first home is an exciting adventure, but it can be pretty nerve-wracking. Though you will be making one of your dreams come true, you should also take care to beat the obstacles you might encounter. For instance, there’s always the chance of making costly mistakes that will ruin your experience.
Avoid problems as a first-time home buyer by going through these common mistakes.
1. Failing to Work with a Real Estate Agent or Realtors
Though many people believe they can find a great home on their own, this is not true. You must buy a property you are happy with, and you need a real estate agent who can help you find the right house.
Real estate agents or Realtors can help you take on the responsibilities of the process and stay on top of your DIY (do-it-yourself) enthusiasm. They can also help you find more information, market knowledge, and tell you about the real estate market in the area, from current housing trends to market trends.
2. Not Saving Enough Money
As a first-time home buyer, you will be expected to put down a considerable lump sum of money to secure your home. If you don’t save enough, you will have to buy a more expensive home or even forgo your dream home.
The number of years you’ve been saving for a home purchase indicates how much money you can put down. To estimate how much you will need to put down, determine how much you can spend per month. Multiply by several years to calculate the amount of money you’ll need.
3. Ignoring the Benefits of FHA, USDA, and VA Loans
While many types of mortgage loans are available to first-time home buyers, some are more lenient than others. FHA, USDA, and VA loans can readily financially give you a leg up.
FHA loans offer buyers flexible qualifying requirements, often allowing buyers to put as little as 3.5% down. As a bonus, buyers who purchase their home with an FHA loan will generally receive a better interest rate than those who do not.
USDA loans are also an excellent option for first-time home buyers who want to make a small down payment on their homes.
VA loans are a popular option for veterans, and they can also be available to veterans’ spouses who may have no other choice but to buy a home using a VA loan.
4. Being Too Emotional
This is a common mistake for many first-time home buyers. Many people fall in love with a home and put in an offer even if it’s not the best decision for them financially. If you spend more money than you can afford on a home, you could end up in a predicament that could have been avoided if you had been more objective.
Always remember the bottom line. If you don’t have the money for the home, don’t buy it.
5. Not Seeking Pre-Approval First
Many first-time home buyers skip the pre-approval process, but it’s a crucial step that shouldn’t be skipped in haste. You need to know what loan you will qualify for before you make an offer on a home, or you could waste time on homes that are out of your price range.
Buying your first home is a huge step, and you should do everything possible to secure the best home for you and your family. While home buyers make mistakes, avoiding these common mistakes will help you avoid them and buy the home you’ve always dreamt of.
For the best mortgage rates on Long Island, contact us at Lakeview Mortgage Bankers. Our financial experts can help you get the start you need to fulfill your dreams as a first-time home buyer. Book an appointment with us and apply now!