First-Time Homebuyers Guide: Common Mistakes to Avoid

Back at it again with tips for first-time homebuyers—this time to go over some common mistakes to avoid. Making the leap and buying your first home is exciting! But be sure to take your time and not fall into these common traps.

1. Thinking you don’t need a real estate agent. Professional help is important when you are buying your first home. Ask your family and friends for references on a good real estate agent. A real estate agent will provide you with independent advice and help you with any negotiations and paperwork.
2. Making an offer before having a preapproval letter. Before you start looking for your first home you need to get a preapproval letter for a mortgage. Don’t be afraid to go to a bank and get preapproved. It is important to know what the bank will lend you before starting your search. You want to be sure you are looking at houses within your budget.
3. Not getting the house inspected by a professional. No matter how new or old the house is, it is very important to get the house inspected by a professional. They will review the house, inside and out, from top to bottom, and provide you with a detailed report of the condition of the house. This can bring to light any potential issues you may want the current owner to fix before you finalize the purchase.
4. Forgetting to factor in the other costs outside the mortgage. When you are planning your finances and budgeting for your mortgage, it is important to factor in costs like property taxes, homeowners insurance, utility bills, and even potential maintenance.
5. Opening up a new line of credit before your closing date. When you are closing on a new home, you may feel the need to buy all new furniture or appliances. And the store credit card with 0 percent interest for 24 months may seem like a great idea, but your mortgage lender will definitely be pulling your credit right before closing and any new debt can cause issues and potentially even stop the sale.

At every step in the process, ask yourself if what is happening makes sense. If you aren’t sure, ask someone you trust such as a parent, in-law, sibling, or advisor. Avoid these simple mistakes at all costs, and enjoy your new home.