Ready to buy your first house? Make sure it’s a good one! Read on to learn about some common mistakes home buyers should avoid!
Buying your first house is a monumental step in life.
It’s no small feat, either. With the housing market what it is in most places, a lot of Millennials and Gen-Z are resigned to the fact that they might not be able to buy until later in life. If you’re lucky enough to be able to buy, this guide is for you.
Today, we’re going to talk about 5 critical mistakes that you should avoid when you’re buying your first house. It’s easy to get caught up in the excitement of this event, but you can’t overlook certain things or the house is going to end up costing you a lot of unnecessary money.
1. Didn’t Do Enough Research
As a first time home buyer, there are more than likely programs, grants, loans that you can get where you live.
You have to do this research before you start looking for your home to take advantage of these things. Whether you’re moving into the home yourself or you just need some real estate investment strategies, these programs can be extremely beneficial.
It might be something as simple as a low down payment program with lower interest rates. Every little bit counts when you’re spending so much money, so do your due diligence.
2. Didn’t Pay Off Debts First
Getting approved for a home owner’s loan is tough as it is, but it’s going to be much harder on you if you’ve got a lot of student and credit debt. If possible, get these mostly paid off before you take on a mortgage.
The better your credit score is, the more funding you’ll receive from a lender anyways, so it’s better for you to tackle your other debts first. It can be extremely daunting when you pile house payments on top of what you already have.
3. Small Down Payment
The size of your down payment dictates the terms of your mortgage, so you always want to muster up as much as you can for that. A lot of prospective home buyers jump right into the house search, find something they like that’s out of their price range, and go for it anyways.
It’s better for you in the long-run if you spend some time saving up for the down payment. You’ll have lower monthly fees and you won’t be paying the bank interest for the next 30 years.
4. Didn’t Secure Your Mortgage First
Too many first-time home buyers get wrapped up in the home buying process and start looking for the house before they secure the mortgage.
Getting pre-approved for a loan means that you’ll be able to search confidently for what you know you can afford. You’ll also be able to get the ball rolling faster when you’re pre-approved, so you can beat out the competition.
5. Didn’t Inspect the House
Old houses, especially, are prone to having a lot of malfunctions with the stuff you can’t see. It’s important to hire a professional inspector to go through and make sure everything’s in good shape. You don’t want to be paying for large-scale repairs within a year of moving in.
Your First House Can Be Your Only House
A lot of home buyers look at their first house as a stepping stone to a bigger better house down the road, but that doesn’t necessarily have to be the case. You can make your first home your ideal home by upgrading it and changing the interior design whenever you need something fresh.