If purchasing a home is new territory to you, the entire process can seem overwhelming. With so many rules, regulations, and requirements, it can be difficult to stay on top of everything while you are searching for a place to call home. To help your home buying process go smoothly, following are a few of the most common mistakes made by first-time homebuyers.
“I didn’t save up enough money.”
Most first-time home buyers focus on saving money for the down payment. But do you have any extra savings available to cover other costs? You can’t forget about closing costs and property taxes. In fact, professionals typically recommend that new homebuyers have enough saved to cover two or three months of mortgage payments.
In addition to the costs associated with the actual purchase, you may be in for a shock when it comes time to actually fill your house. If this is your first real place, you may be starting from scratch. This means that you will need furniture, home accessories, kitchen essentials, sheets, towels, and more. By saving up a little more money, buying all of these essentials will be more enjoyable instead of just painful to your bank account.
“I didn’t get preapproved for a loan.”
You may have an idea of what you think you can afford, but your opinion doesn’t hold much credibility in the real estate world. Getting a preapproval letter from a lender will let the seller know that you are serious about buying and that you are able to afford the property. Sellers may be more hesitant to deal with you until they can guarantee that you are actually a potential buyer.
“I didn’t check my credit score.”
Did you know that approximately 42 million credit reports have errors? And you could easily be one of these people. Go ahead and check your credit score, preferably a few months before you are trying to buy. If there are errors that are negatively impacting your credit score, this will give you plenty of time to get things cleared up and corrected.
By avoiding these common mistakes, buying your first home will be a much more pleasant experience.