Getting a new home can be tricky with all the steps involved. Inexperience makes a lot of first time home buyers make mistakes that shouldn’t even come up. And sometimes after buying a home, they are left regretting it. What are the first time home buyer mistakes to avoid and how should you avoid them when making your own residential decisions?
Here Are First Time Home buyer Mistakes You Should Ensure To Avoid
Finding A Home To Buy Before Getting Loan
Excitement makes people go hunting for new houses before doing the first necessary thing. Getting a mortgage. Before searching for a home to purchase, pass the first stage of getting a mortgage loan approved. This way you will be sure you are getting a loan and you will know the amount you will be getting. Your search will be more defined as it will be in alignment with the budget and not just your desires.
Not Checking Credit Score Before Applying For Home Loan
Yes, you have to know your credit score to assess your eligibility status. To find out your credit score, you can make use of the apps for checking credit scores. If your credit score is low, then you should look out for government loans. You need a credit score of at least 650 to qualify for normal loans.
Ignoring Post Purchase Expenses
Most first time home buyers fail to analyze all the other costs that come with owning a home like property tax, insurance, utility , home maintenance. At the end of the day, you fall short on your budget, and balancing your cash flow becomes difficult.
The best approach is to make a budget including post home purchase costs and search for a house that meets your price range. It will save you all the time and headache.
Making No Provision To Fund Down Payment
The common rule is to have up to 20% of the loan amount you qualify as down payment. This is to avoid paying private mortgage insurances. However, there are ways around this even if you have reached this point on your search and you don’t have a budget to cater for down payment.
Look out for state housing programs that render housing assistance for first time home buyers. Do your research and find out if you qualify for these loans as it will be helpful here.If you qualify, you can apply and get yourself the fund to cover this.
Meeting Only One Money Lender
With all the excitement of owning a home, most first time buyers limit themselves to only one lender. By doing this, you miss out on better available alternatives that might be open for you. So, reach out to as many lenders as possible. Compare their terms and conditions and take your time when deciding the one that is best for you. This way you will explore all available options and go with the lender that suits you best.
A job change gives lenders the impression that you’re not balanced financially and you won’t be able to pay for the loan. Many first time home buyers are not aware of this and it affects their approval for the loans they apply for. If you are considering a job change, you may want to hold on as this will delay your approval and stand in the way of getting a loan.
Taking The Narrow Lane
You have had the thought of owning your own home and moving out of your rental home for a long time. The image of your dream house is so clear in your head and now that you’re ready, you declare the hunt on. Pause! Slowing down a little will do you a lot of good if this resonates with you.
Starting out your home hunt with such a mindset could lead to a lot of financial trouble. It is fine to have the model you want but keep your mind open as being rigid with decisions like this can lead to paying for the wrong house that wouldn’t satisfy you.
Prior to when you apply for a loan, you need to pay careful attention to your bills and pay them on time. This will help build trust and make your lenders feel you can be given the amount you qualify for. It will be easier for them to believe you will pay back. Any trace of an unpaid bill will stand in the way of getting your loan approved.
Not Taking Enough Time To Inspect Before Making Payment
Do not get carried away by the perfect decors and interior. Keep your mind open and do a proper inspection of the whole house. Ensure you wouldn’t need to spend much on repair after moving in. Be sure that the necessary things are intact before paying. This will save you from the stress of later regret or even debt.
Forgetting To Survey Environment Topography
This is another important thing to note yet most first time home buyers don’t do this. You need to survey the area. The current people there, the safety, the landmark. What buildings will be around you? If there are unused lands, what buildings will be erected on those spots? You need to find out all of this to avoid settling In the wrong place.
It often seems like getting the loan is all that matters. Yet the search can be just another hazzle. Finding the home that pleases you may seem daunting especially when all the ones you come across don’t fit into the image of your dream home.At this point, most first time home buyers settle for anything as the search becomes tiring.Settling for just anything is not a way out and you have to hold on till you find the right home to buy.
Buying a new home that will be right for you requires caution and patience.Its best to avoid these mistakes and make the right choice now.Going for a home you don’t really like will make you unhappy and there are higher chances you would want to purchase another new home in the future. Why not persevere and make the right choice now?