Buying your first home can be an exciting, yet also overwhelming process. From finding a home that meets your needs to knowing how much you can afford, there are numerous factors that can end up leaving you more stressed than excited. No one wants to experience any regret over the biggest purchase they’ve ever made in their lives, so make sure you don’t make these mistakes as a first-time homebuyer!
Don’t Skip the Pre-Approval
Once you have committed to the decision of buying a home, your first step is to get pre-approved by a lender. Keep in mind that pre-approval is different than prequalification. Getting prequalified gives you an idea of how much you can afford, while pre-approval takes an in-depth look at your credit report and ability to purchase a home. Keep in mind that if you are in a seller’s market, most sellers won’t seriously consider an offer that doesn’t come with a pre-approval letter stating the buyer has a lender’s approval to purchase the home. Getting pre-approved will also give you better guidance in your search for the right home and keep you from getting your heart set on a home you can’t afford.
Never Get Too Emotionally Attached
If you’ve just looked at a house for the first time and you’re already imagining your kids playing in the big backyard, then you might be too emotionally invested. Remember that buying a home is a business transaction. It’s likely the biggest purchase you will ever make, and it’s a decision that requires a clear head. If the decision becomes too emotional, you could end up paying too much for that home. Step back and think very critically. Listen to your home inspector and your real estate agent when it comes to making an offer.
Have You Saved Enough?
Saving up for a down payment is only one part of the journey to homeownership. Many first-time buyers don’t consider that they will also need to pay for closing costs (typically two to five percent of the home’s sale price).
Always Choose the Right Lender!
A common homebuying myth is that a buyer must use the same lender that they used to get pre-approved. Buyers actually do have the power to shop around and compare quotes from different lenders. Put in the extra effort to locate an experienced lender who can offer you a range of solutions and walk you through your life-changing purchase.
If you’re thinking about buying a house, call one of our experienced loan officers today! We’re committed to showing you the way home.