Buying a House You Can't Afford
When buying a home, it is critical to plan your budget early and include additional costs like homeownership, property taxes, and maintenance costs. Purchasing a house that you can't comfortably afford can lead to stress and complicate your financial goals.
Not Saving Enough for a Down Payment & Closing Costs
Down payments affect interest rates and monthly mortgage payments on a home. With a larger down payment, the mortgage is smaller, and its monthly payments are less burdensome. On top of your down payment, you also need around 3% of the purchase price saved for closing costs.
Not Getting a Home Inspection
A home inspection aims to determine the property's condition, including any possible repairs, maintenance issues, or potentially costly repairs. You can sometimes use a home inspection report to negotiate repairs or lower purchase prices with the seller.
Not Getting Pre-Approved For Your Mortgage
In a competitive housing market, it is crucial to get pre-approved through lenders. It not only makes the seller view you as a serious buyer but also increases the chances of your offer accepted. Once you're pre-approved, don't keep shopping around for better rates. This will delay your closing and is typically not worth the time
Not Working With A Real Estate Agent
Buying your first home on your own is possible, but there are many requirements and tasks. Hiring a qualified agent can save you time, reduce stress and prevent you from making costly mistakes when purchasing a home.