Buying a home for the first time is exciting, but it can also be overwhelming. In the process of finding the perfect place, many first-time homebuyers make costly mistakes that can be easily avoided with a little information and preparation. From skipping the pre-approval process to overlooking hidden costs, there are many ways to derail the dream of homeownership. If you’re in the market for your first home, read on to learn about the 6 common first-time home buyer mistakes and how you can avoid them.
Not getting pre-approved for a mortgage
Before you start shopping for homes, you need to know how much you can afford. Getting pre-approved for a mortgage will give you a clear idea of what your budget is, so you don’t waste time looking at homes that are out of reach. Plus, if you find a home you love, you’ll be ready to make an offer and beat out other buyers who haven’t been pre-approved.
Failing to stick to your budget
One of the biggest mistakes you can make when buying a new home is to go over budget. It’s crucial to have a budget in mind and stick to it when deciding on a property. Be realistic about what you can afford, including the down payment, closing costs, and the monthly mortgage payment as well as other expenses (more on this later). Before you start looking for a house, get pre-approved for a loan so that you know exactly what you can afford.
Not considering the full cost of owning a home
Buying a home is not just about the sales price. There are additional costs that come with owning a home, such as property taxes, insurance, utility bills, and maintenance expenses. Failing to account for these additional costs can lead to financial stress and put a strain on your budget. When you are calculating your budget, make sure to include these expenses so you know exactly what you can afford.
Neglecting researching the neighborhood
Another common mistake is buying a new home in a neighborhood that you are not familiar with. It’s essential to research the area and make sure that it is a good fit for you and your family. You should also check out the local schools, amenities, and parks. Not knowing the neighborhood can lead to major issues down the line.
Not considering resale value
While you might be focused on finding a home that suits your current needs, it’s important to think about the resale value in the future. Your circumstances might change, and you might need to sell the home in the future. So, keep in mind the location, neighborhood, and features that could impact the value of the property in the future.
It’s easy to get emotionally attached to a home you love, especially if it’s your first. But don’t let your emotions cloud your judgment. Just because a house is beautiful or is in a desirable location doesn’t mean it’s the right fit for you. Don’t let your emotions cloud your judgment, and take your time in making a decision that’s right for you. And don’t be afraid to walk away if the deal doesn’t make sense.
Buying your first home is a big decision and it’s important to do your due diligence during the homebuying process. Following these tips will get you ready to tackle the homebuying process with confidence and mistakes. Knowledge is power when it comes to buying a new home. So do your research so you can be better equipped to make informed decisions and find the perfect home that will suit your needs for years to come.
S&A Homes: Built where you live
Ready to make the leap into homeownership? S&A Homes offers a diverse selection of home designs to accommodate a variety of home buyers throughout Central and South-Central Pennsylvania. Learn more about new home opportunities from S&A Homes, including quick move-in homes and build on your land opportunities, by calling 1-855-SAHOME1 or visiting us online at SAHomeBuilder.com.