Buying a house is always an overwhelming and stressful experience, but if it is your first time buying your own house, then it is a whole new ball game.
First things first, you need to relax and accept that you will make quite a few mistakes that will put you in a fix, but it is okay. With some research and practice, you will eventually become a pro.
In this article, you will learn about the 3 mistakes that you should avoid making at all cost as a first time home buyer.
- Not understanding the full cost
If you are a first time home buyer, there is a high chance that you are in the delusion that mortgage payment is the only cost that you need to save up for. What you fail to understand is that mortgage payment is just the primary cost that you need to pay. There are many other expenses that you need to consider, like the property tax, insurance, maintenance, water bills, and electricity bills. Note that you should never spend your entire budget on the house because you should save some money for emergencies and unexpected expenses that you will incur after you seal the deal.
- Settling for the first lender that you stumble upon
Buying a house is very similar to shopping. You will regret a lot if you settle for the first thing you see, without looking around, haggling, and getting the best rates. This means that you should never settle for the first lender that your friend or the real estate recommends. The best thing to do is at least narrow down three lenders, compare the mortgage rate quotes, and then choose the best one.
- House hunting before getting a loan
Most first time home buyers think that house hunting is the first obvious step to buying a new house. The truth is that once you decide that you want to buy a new house, your first step should be to sort the finances. The worst thing you could possibly do is find your dream house and then fail to get a loan approval. Pre-qualified loans are the best as they help you be clear on your budget, find a house that falls within that budget, and it speeds up the overall process of buying a house.
Just don’t rush into it and do your homework well before you sign the final house papers.