First-Time Home buyer Mistakes To Avoid
It’s a frightening and exciting process to buy your first home, because it’s a huge commitment. It’s easy to get swept up in the excitement of home shopping and mistakes can leave you with buyer’s remorse later.
1) Looking For a Home Before Applying For a Mortgage
A common mistake that many first-time buyers make is to start viewing homes before they get in front of a mortgage professional. You may end up behind the ball if you find a home that you love and end up losing the property by not being pre-approved for a mortgage.
2) Oozing Your Hard Earned Savings
It’s never recommended to spend all or most of your savings on the down payment and closing costs, especially with the current events. It is a good idea to have 3 to 6 months of living expenses in an emergency fund no matter if you plan to buy a house or not.
3) Spending Over Your Budget
It is easy to fall in love with a home that may stretch your budget but overextending yourself is never a good idea. Buying a house that exceeds your budget is more likely to put you at a riskier position and less likely to have wiggle room in your monthly budget for other expenses.
4) Miscalculating the Hidden Costs of Homeownership
If you are shocked by seeing your new monthly mortgage payment, wait until you add up the other costs of owning a home. As a homeowner, you will need to pay for property taxes, mortgage insurance, homeowners insurance, utilities, etc. That brings us back to the points listed above, you may need to keep your savings intact.
5) Not Paying Attention to the Neighborhood
It is understandable that you would like a home that meets your needs and checks off items on your wish list. But it is easy to get lost in the home’s aesthetics instead of focusing on things that may be more important. It could be difficult to live in a house you love that is in a neighborhood that you dislike. Purchasing your first home can be exciting and overwhelming at the same time; and exploring the huge range of home loan options can be a real daunting task. We know how to turn your dream of home ownership into a reality. For that, contact Opulent Finance today!