There are a lot of things that go into buying a house, especially if it’s your first time. It’s not enough that you want to buy a home and have a steady income.
Aside from reading about tips and other hacks to make the experience worthwhile, another crucial thing to know is the common mistakes you can avoid. What are they? Let’s get started!
1. Shopping for a Home Without a Mortgage Application
Before you start shopping for a home, you want to make sure that you already have a general idea of how much you can borrow from the bank. Otherwise, you will only waste your time because you would probably end up looking at homes that you can’t afford. You don’t want to get disappointed in the end, right?
So, the best thing to do is get a pre-approval first before you start looking at available homes.
2. Limiting Yourself to One Lender
A lot of first-time homebuyers commit this mistake—sticking to one lender only. What’s stopping you from discussing your options with other lenders, anyway?
Since it’s your first time buying a home, this is the best time to shop around and talk to a few lenders. Doing so will help you score better terms and deals that will kickstart your homeownership!
It’s ideal to have at least three different lenders to choose from. Compare rates, fees, and loan terms to help ensure that you’re getting the right mortgage for you.
3. Doing Everything Too Fast
Sadly, a lot of first-time homebuyers tend to rush the process. When this happens, a homebuyer may not save enough money for the down payment and closing costs.
Instead, plan everything out carefully. It’s ideal to have a home buying timeline at least a year in advance. Prepare for it by improving your credit score, paying off your debts, and saving more money to help guarantee you’re in a good financial standing the moment you start paying off your mortgage.
4. Overextending Yourself
We’ve seen it with so many first-time homebuyers—they tend to overextend themselves in which they end up buying a home that they couldn’t afford. Remember, home prices today are increasing continuously, which only means you need to be mindful of how much you can afford when buying your first-ever house.
Focus on monthly payments you can afford instead of getting the maximum loan amount that you qualify for. Remember, just because you qualify for a specific amount of loan doesn’t mean you can afford the monthly down payments. Assess your finances first and make sure you can afford the home that you purchase.
As a first-time homebuyer, there are a lot of things that you don’t know, which can make the process overwhelming. Aside from educating yourself in the home buying process, it’s also crucial to know the common mistakes to avoid. Doing so will help you be more mindful of not committing them and make the process go as smoothly as possible. Also, don’t forget to have the right people to give you professional advice and support during this process—you’re going to need them!
Get the best home loans in Sacramento, CA today. Hawkins Home Loans will help make the home-buying process stress-free. Schedule an appointment with us today.