Buying your very first home is certainly a fun and exciting journey. There is a lot going on during this time and it can be difficult to know what to do first. Especially since you have never done this before.
While at times the process might seem a little confusing, there is no need to panic. Thankfully, there are steps you can take to help keep you from making costly mistakes when it comes to buying your first home.
In this article, we share the mistakes first-time homebuyers need to be aware of when buying your first home. Use them to help prepare you for the day you close on your first home!
The following are some of the most common mistakes that you want to avoid when purchasing your first home:
All of these factors can affect your home buying process and can make things a little more difficult than they need to be.
Because it is such a big event, it is easy to get emotionally attached when you find the first house of your dreams. However, you want to be cautious of this. There are a number of factors that can affect the sale of the home. This means that there is a good chance that you might not get the home.
For example, there could be other buyers putting in strong offers. Or your offer might not hold enough weight for the seller, so they might choose someone else.
Throughout the process you will do well to keep in mind that there will be other homes that you love. If at first you don’t succeed, simply move on to the next.
You can never have enough money saved up when it comes to buying your first home. In addition to the down payment needed experts say that you should expect to have two to three months worth of your anticipated estimated mortgage payments saved up. You should also expect to pay two to five percent of the home’s purchase price in closing costs on the day of closing.
Homebuyers will also need to be ready to front emergency costs, like repairs for a leaky roof for example. You never know what emergency you might run into that you need to buy or to fix. Have more money than you planned to have budgeted and then some.
Buying your first home is a big moment. And expensive! Take the time to prepare yourself for the journey, both mentally and financially.