Thinking about buying your own house? You’ll want to make sure you avoid these common first-time home buyer mistakes! Read on, as Home Town Builders goes over the biggest mistakes often made by rookie home buyers!
- Starting With A Home – Not A Loan
Before you even head to Zillow.com and start browsing real estate listings, you should be putting together a budget, and then ask for mortgage prequalification.
Put together all of the information you have about your finances, go to a bank or credit union, and see what kind of loan you can qualify for. Then, you can base your potential home purchase on how much money you’ll be allowed to borrow.
This helps you stay on budget, and narrow down your home options. It also makes your purchase a financial decision – not just an emotional decision.
- Getting Approval From Only One Lender
If you find a home you love that’s in the right price range, you may be ready to close on it. But before you do, you should get approval from multiple lenders, so that you can shop around and see where you’ll get the best rate.
You can save thousands in the long run if you take the time to get approved by more than one lender.
- Dumping All Of Your Savings Into A Down Payment
If you pour all of your savings into a 20% down payment, you could be in trouble in an emergency situation – for example, if you lose your job and can’t get a new one within a few months. This could even result in your home being foreclosed upon.
If you don’t have enough cash to comfortably cover the down payment, consider paying for mortgage insurance. Mortgage insurance costs more per month, but allows you to avoid making a large down payment on your home – freeing up your “rainy day” fund.
Avoid These Common Mistakes and Find The Home You’ve Always Wanted!
Buying a home is a big financial decision. With these 3 tips, you can create a reasonable budget, save money on your loan, and even avoid putting down a large down payment – ensuring your financial future is safe. For more information on buying your first home, call us today at (407) 604-1414.