5 Common First Time Home Buying Mistakes

Dec 23, 2019 | First Time Home Buyer

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. 

  1. Not getting pre-approval
  2. Failing to shop around
  3. Draining your savings
  4. Not focusing on the neighborhood
  5. 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!

Should You Purchase a Home with Previous Water Damage?

Should You Purchase a Home with Previous Water Damage?

Finding the perfect home can feel like searching for a needle in a haystack. When you discover a great property with a history of water damage, it’s natural to hesitate. So, should you purchase a home with past water issues? Here’s what you need to consider before...

Buying a Home with a VA Loan After a Chapter 13 Dismissal

Buying a Home with a VA Loan After a Chapter 13 Dismissal

Life doesn’t always go as planned, but that doesn’t necessarily mean homeownership is out of reach. If you’ve had a Chapter 13 bankruptcy dismissed, buying a home with a VA loan is still possible. Let’s walk through what you need to know to move forward with...