Being a first time homebuyer is one of the most exciting accomplishments of your life. Along with feelings of pride, excitement, and liberation comes feelings of frustration, defeat, and anxiousness. Undoubtedly, there will be steps in the process that are more challenging than others. It’s important to remember we can only control what we can control.
As a first time homebuyer- or even a seasoned buyer- it’s difficult to know what you can control in the process. These are mistakes you want to avoid when buying your home, because they may cause you more headaches and delay your process if ignored.
First Time Homebuyer Mistakes
1. Being in a hurry
Take a few extra steps to interview agents, get loan estimates and get pre-approved. Skipping these steps can lead to wasted time and money. Find an agent who understands your time, budget, and wants. Compare loan estimates to get the best possible deal. And get pre-approved to create competitive offers.
2. Not understanding how much you can afford
Buying a home means more than just a down payment. It means recurring monthly payments, taxes, insurance and utilities – not to mention repairs. Understanding your finances is a must when deciding how much you can afford to spend. A financial advisor or loan officer can help you determine what a comfortable figure is for you now and in the long term.
3. Not reviewing your credit
Yes, lenders and creditors are human and make mistakes! Review your statements and dispute if appropriate. Need to boost your score? Timely payments and lower overall utilization will help. Beware: applying for a new credit card/loan or making large purchases make your score drop! You can get a free credit report from companies like Credit Karma or Experian.
4. Ignoring first-time home buying programs
First time home buyers have a great opportunity to take advantage of lower down payments and government loans. These state and federal programs can save money. Ask your loan officer about your options!
5. Emptying your savings
It’s tempting to put all you have in your bank account into the down payment or in a check at closing. Consider the upgrades and repairs that need to be made once the house is yours. Keep some cash in the bank so you don’t have to put expenses on a credit card.
6. Passing on a home inspection
Take the extra step to understand the status of your soon-to-be home. Evaluating the home’s foundation, roof, plumbing and electrical system for hidden problems will give you peace of mind – and save you from crippling expenses immediately following closing.
7. Not researching Title & Settlement costs
Since you are paying the closing costs, you have the right to choose your NJ title and settlement agency, and you should. This can save you money, headaches, and unnecessary delays. Check out this online instant calculator for title and settlement costs: www.clearskiestitle.com
Avoid these common mistakes and you’ll be clear to close in no time! Happy house-hunting!