While buying a home can be very exciting, there are several mistakes that first time homebuyers can, and often do make. If you are entering the market as a buyer for the first time, be sure to avoid these 4 mistakes along with the financial stress and buyer’s remorse that often accompany them.
- Shopping for homes before preapproval is granted. Many people think that shopping for homes early will be a great means to save them time in the long run. You should always focus on the financial side first. Your preapproval will give you a much clearer idea of your price range so that you don’t end up falling in love with a home outside of your financial means.
- Not exploring first time buyer programs or loans. There are several programs in place to make your first home purchase more manageable. Because of their favorable terms, many first-time buyers opt to use FHA loans, USDA loans or VA loans when they qualify. A trusted lender can help you explore several loan options to find one that works best for you.
- Unreasonably large down payments. A down payment should never completely drain your savings account. Many homebuyers make hefty down payments in order to surpass 20% of their home value to avoid paying for private mortgage insurance, but you shouldn’t force this if it causes massive financial strain. Instead, continue to save until a 20% down payment is feasible or consider contributing a smaller down payment.
- Not accounting for closing costs. A large portion of the homebuying process emphasizes total price, down payments and monthly payments. This can cause closing costs to slip from the forefront of buyers’ attention. Don’t let this happen to you because these costs add up quickly! Make sure you account for expenses like an appraisal, home inspection and property taxes as you move through the homebuying process.
Golden Lenders Helps First Time Homebuyers Secure Mortgages That Work for Them
Golden Lenders helps home buyers in Colorado, Florida and California understand the different types of mortgages that are available and provides loans to help people achieve the dream of homeownership. Since the specifics of which mortgage to choose is dependent on a variety of factors, we encourage you to call us for more information and find out which is right for you. Our number is (303) 482-2361, or you can send us a message.