Are you sure you’re ready to buy your potential forever home?

Did you know more than half of the millennials regret buying their homes? While it feels great having your own place, don’t underestimate the costs and responsibilities of being a homeowner. If you feel unsure and unprepared, we’ve got this short yet helpful article to guide you!

Read this article to learn the top 5 first time home buyer mistakes to avoid.

1. Searching for a House Before Securing a Mortgage Loan Approval

You have to know the maximum loan amount the bank is willing to lend first. Pre-approval, when you don’t have enough money for a down payment, unstable income, or less-than-stellar credit score, will be harder than you think.

In some cases, you have to surrender your earnest money if the deal falls through.

By getting approval for a mortgage loan, you can negotiate the best possible deal with the seller. Spare yourself from the trouble of letting go of the house you like and finding a new one.

2. Overlooking the Hidden Costs of Homeownership

The house’s total selling price is not the only thing that matters when looking for a house, far from it! Consider the extra costs of maintenance, insurances, property tax, and more. If you’re buying an older house, watch out for safety hazards, old wirings, and plumbing in need of repairs.

Research the extra costs for home repairs online or hire a home inspector. They can look out for any existing or potential house problems. Ask for quotes for expected costs on upgrades you’re planning in the future.

3. Emptying Your Savings

Cleaning out your savings to make into the 20% down payment is one of the common first time home buyer mistakes to avoid. Avoiding the mortgage insurance loan is ideal, but you can buy a house with as little as a 3% down payment.

Look into local or state loan programs such as FHA, VA, and USDA loans that may not need a down payment. Have at least 5 months of living expenses for emergencies. Depleting your savings could lead to financial problems that would be best avoided.

4. Not Seeking Professional Help

Most sellers have realtors overseeing the deal with their best interest in mind. If you’re not careful enough, they might persuade you to buy the house in unfair conditions. Hiring a reputable agent with referrals from family and friends is the best course of action.

To find the best houses for sale with your preferences, an experienced agent can look into multiple listings. They can give advice and add clauses in the sale contract to protect your interests. You may also get homebuyer rebates and save a thousand dollars on your closing costs.

5. Rushing Through the House Buying Process

Did you find your ideal house at the right price? Don’t forget to look into the surrounding neighborhood. It doesn’t matter how much you love the house if you ended up hating the neighborhood.

Ask your real estate agent about the school ratings, crime level, and public transport. Remember house hunting may take weeks or months! Think about the long-term effects of buying the house for any potential hassles and expenses.

Top First Time Home Buyer Mistakes to Avoid

Keep these first time home buyer mistakes when searching for a place to call home. With these in mind, you’ll have no regrets along the line! Wise up and buy a house today!

Do you want to learn more about residential housing or real estate? Check out our guides to learn all you can today!