When you walk in our door, we want you to be excited and hopeful about your upcoming home buying experience. If you leave here confused out about loan options, we’re not doing our jobs. We take mortgage lending very seriously and ensure every client has heard all their options and understands the entire process. Home buying should be fun. Here are some mistakes to avoid if you’re getting ready to purchase your first home:
- Starting the search before getting pre-approved. There is a lot of demand for homes right now, and inventory is tight. By getting a pre-approval, you’ll ensure you’re not wasting your time on homes that simply won’t work. Time is of the essence is this booming market. You probably won’t get an offer accepted without a pre-approval and asking for extra time to do that in an offer will not put you to the top of the list either.
- Choosing the wrong mortgage lender. Many people go to their credit union or bank to get their loan without looking around. Sometimes this ends up okay, but we suggest coming to us. We’re an experienced financial institution that makes the loan directly to you and we control the entire process. This allows us to work closely with you and find what truly works for your situation.
- Getting too excited and going over budget. Many homes are being sold over list price, but that doesn’t mean you should be going over your budget. Focus on what your monthly payment needs to be rather than just the maximum amount you can get qualified for. You’ll need to be honest with your budget and stick to it. No matter how excited you are for that house, if you get financially trapped, you’ll end up in a frustrating situation.
- Using all your savings. If you’ve saved up money just for a home purchase, that is fantastic. However, don’t completely drain all your savings to get that dream home. Instead, try to keep about three to six months in an emergency fund and you’ll feel a lot more comfortable about using the rest on a home purchase.
- Not accounting for the neighborhood. Regardless of how wonderful the home is, you’ll want to pay attention to the neighborhood. Although you can’t pick your neighbors, you can still get a good feel for the vibe of the neighborhood if you take a few minutes to check it out. Do some homework on the local schools, what stores are close by, and how traffic flow affects the neighborhood before you get too committed.
- Miscalculating homeownership costs. After the last paper is signed, don’t make the mistake thinking all you have left is the monthly payment. Homes require expenses that many first-time buyers don’t think of. Estimate repair costs or upgrades, maintenance needs, taxes and insurance, and more before you finalize the deal. This is something we can help you estimate.
Don’t let this list scare you away from house shopping. A good realtor should help guide you through your concerns, and we are here to help with all things on the financial side. Reach out to our friendly staff today to get all you questions answered.
