Don’t Make These 10 Home-Buying Mistakes

Here are 10 things every single homebuyer should be cognizant of.

Mr. Licorice and I are back once again to bring you some great real estate tips. If you or someone you know is a first-time homebuyer, you’re in luck. Today we’re going over the 10 most common mistakes that first-time buyers make and how you can avoid them. If you’re buying a home for the first time, do your homework to avoid these potential pitfalls:

1. Looking for a house before applying for a mortgage. It’s a big waste of time and you won’t even be able to put an offer in. It’s like going to the mall without any money.

2. Buying more home than you can afford. It’s so easy to fall in love with a home, but it’s harder to break up with it when you can’t afford it. Focus on the monthly payment, not the maximum loan amount.

3. Moving too fast. Buying a home is a big step. Take your time. The last thing you want to do is rush into it and run out of money when it comes time for closing costs.

You don’t want to hate the neighborhood your home is in.

 4. Draining your savings on closing costs and down payment. Save some extra money in your account before starting the process.

5. Being careless with your credit. After you get pre-approved, the last thing you want to do is open new credit cards or make big credit purchases.

6. Not researching the neighborhood. Don’t get fixated on the house and ignore the neighborhood. Obviously, you want the perfect home, but you don’t want to hate the neighborhood it’s in.

7. Making an emotional decision. It’s easy to get wrapped up in the home-buying process. But if you do, you’ll wind up overpaying for a home.

8. Assuming you need 20% down. You can get a loan with just 3% down in today’s market.

9. Waiting for the unicorn. Just like unicorns, the “perfect” home doesn’t exist. Keep an open mind and the right house will come.

10. Miscalculating the hidden costs of homeownership. If you think you have sticker shock now, just wait. There will be repair costs, property taxes, and more that you’ll be responsible for. Save three to six months’ worth of paychecks and you should be fine.

If you have any questions about these mistakes or anything else related to real estate, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.