4 Common First-Time Home Buyer Mistakes

View of Wilmington North Carolina from across the river

While buying your first house is an exciting time and a big milestone, it’s important to keep in mind that there are some actions to avoid during the buying process. Here are some common but avoidable mistakes that first-time home buyers sometimes make.

Skipping the Pre-Qualified Process

When you decide to take the big step towards owning a home, the first thing you should do is to get pre-qualified. This process involves talking to an experienced loan officer about your credit, income, assets and debts. In return, you’ll get an estimate of how much you can afford to spend on a mortgage. This will save you time in the long run because you will only look at houses within your price range. Also, sellers are likely to prefer your offer over a buyer who is not pre-qualified, giving you more negotiating power.

Making a Big Purchase

Making a big purchase like a new car or even new furniture for your dream home before you get approved for your new mortgage can severely impact your total debt-to-income ratio and harm your chances for loan approval. So, no matter how badly you may want or need this new purchase, remember it should come secondary to your main goal of buying your new home.

Not Budgeting Appropriately

It’s not uncommon for first-time home buyers to not fully understand the “cost” of home ownership. It’s more than just the price tag on a house and involves additional costs like private mortgage insurance, closing costs, property taxes, repairs, and maintenance costs. Take the time to ask about all these costs when you work with your loan officer!

Waiving the Home Inspection

Even though a home may look perfect on the surface, it could secretly have problems that are hard for the average eye to spot. Some buyers skip this step to save money, but it’s worth the time and money. The last thing you want is to buy your dream home, only to have to deal with the nightmare of costly problems down the road, like termites, structural issues or even mold.

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.