5 Common First Time Home Buying Mistakes
As a first time home buyer, it’s easy to rush into decisions without understanding their consequences. To avoid missteps in your journey, it’s important to understand common first time home buying mistakes.
First Time Home Buying Mistakes Can Be Costly
Making wrong decisions during the home buying process is common, but it can end up costing you. It could send you into financial distress. The best way to protect yourself is to be aware of the common mistakes so that you can make informed decisions.
Common Mistakes First Time Home Buyers Make
Poor decisions can lead to buyer’s remorse and regret. Don’t make these same mistakes.
- Not getting pre-approval
- Failing to shop around
- Draining your savings
- Not focusing on the neighborhood
- Overlooking first time buyer programs
Not Getting Pre-Approval
In a competitive market, sellers will accept offers from buyers with pre-approval over those who haven’t applied for a mortgage yet. This can mean you miss out on a home that you love.
Failing to Shop Around
Talk to numerous lenders to get the best offer possible. This can save you thousands of dollars by securing a loan with better terms. Don’t take the offer from the first lender without seeing what others have to offer.
Draining Your Savings
Spending all of your savings on your down payment to save on mortgage insurance is a bad idea. It leaves you at risk should you have a change in your financial circumstances (i.e. job loss, illness, etc.).
Not Focusing on the Neighborhood
To be happy in your new home, the neighborhood is just as important as the house. It is advisable to focus on the neighborhood first and then choose from homes available there.
Overlooking First Time Buying Programs
First time buyer programs are designed to encourage homeownership. Be open to all financing options and select the one that will give you the most benefits.
Learn From Others
Others have made these mistakes. Learn from them and actively avoid them. This can help make your home buying journey smoother and may even save you money in the long run.
Start Your Journey
The team at Mortgage Solutions Financial is aware of the mistakes first time home buyers make and are ready to help you avoid them. Chat with a loan officer today to learn more and begin your journey towards homeownership today!