Not educating yourself on the buying process
A lot of first time home buyers are just excited about owning a house, they don’t educate themselves or understand the buying process. Understanding the steps involved when buying a house is very important, it helps you save money and time, it reduces stress during the buying process. Many first-time home buyers are jumping into the housing market because it ‘feels’ right and this is a mistake. How can you know what feels right when you have never done it before?
Not calculating the closing cost
Home Buyers especially first time home buyers think they are ready to buy a house once they are able to save up the cost of the house. With this kind of preparation you will run out of cash once you purchase your house, and you will start struggling with additional cost that comes with homeownership. Some of the recurring costs you’ll want to be sure you include when buying a house are: Home Maintenance, Homeowner’s Insurance, Utility Bills, Cost of relocating, Property taxes, Mortgage Insurance. All these additional costs should be provided for before buying a house.
Not choosing the right real estate team
As a first time home buyer, it is important you assemble the right real estate team. You should ensure you have the right mortgage lender, real estate agent, home inspector, and attorney.
Having right real estate team in place will go a long way in your home purchase as they will be able to guide you throughout the process. Make sure you find a team that works well with you and works well together to ensure a smooth home buying experience.
Do not find your desired house before your desired location
A lot of first time home buyers will want to find their perfect dream house that will never hit the market. House location is very important because there are lots of factors that determine your preferred house location such as closeness to work, children’s school, hospital, safety etc.
One common mistake a first time home buyer will make is failing to buy a house in the location they want because they want to buy their perfect dream house in a location that is less desirable. If there is one thing a home buyer should never settle on, it’s location.
Overextending on your Budget
One of the worst mistakes a first time buyer can make is overextending on your budget. When you overextend your budget your home instantly becomes a burden instead of something you can enjoy. One of the best things you can do as a homebuyer is calculating your monthly costs of living before you buy a house, you can spend 3-6 months calculating an average cost to live, you can set budgets for how much you are comfortable spending and saving. Whatever is left over is a comfortable monthly payment on a house (don’t forget about mortgage insurance).
For those purchasing a home with less than a 20% down payment, private mortgage insurance is likely to be included as a requirement in owning your home.