Buying your first home can be a daunting experience. That’s why it is important to know what common mistakes first-time buyers make.
Common Mistakes When Buying Your First Home
As the housing market continues its recovery from the 2008 economic crisis, real estate agents are seeing more and more people buying their first home. These new home buyers are often looking for a more environmentally conscious and smart home to grow their families in, which is far different from what their parents wanted.
However, there is one thing that has not changed since their parent’s time, and those are the mistakes made during the process. The following list includes a few of the most common mistakes first-time home buyers make.
Not Enough Mortgage Hunting
An experienced real estate agent can tell you that not every bank is going to offer you the same deal in regard to your mortgage. Oftentimes, first-time home buyers are afraid to shop outside of their bank. They might not even know that another bank might offer them a lower interest rate or a larger loan.
It is incredibly important to shop around as much as you can when buying your first home. Doing so can increase the chances of getting the best offer possible.
Not Checking Credit Report
Although shopping for the best mortgage possible is a good place to start, before that, you need to check your credit report. Your credit during the home-shopping process is going to be scrutinized continuously. Therefore, before you even start looking at homes, make sure that your credit score is up to par.
According to federal law, you can request a copy of your credit report once a year from all three bureaus: Equifax, Experian, and TransUnion. If you have a less-than-stellar score, you might want to look for any mistakes made by these bureaus. Not checking your credit score can really affect the type of interest rate you are provided and the type of home you eventually can afford.
Not Taking Advantage of Programs
Today there are a variety of programs out there for first-time home buyers. For example, if you’re a veteran, you might be able to qualify for a VA home loan. A more common loan is the FHA loan. This allows you to pay only a 3.5% down payment.
Of course, these are only a few of the special loans out there. Ask your real estate agent for further information regarding your specific situation as there are plenty of government programs that you can utilize.
Buying a home for the first time can be a tedious and costly experience. However, with the right knowledge, you can begin to understand not only the obstacles ahead of you but also how to avoid them.