It is natural to feel overwhelmed when you set out to make your first house purchase ever. Between the large sums of money, the complex jargon and the fast-paced market, it can often feel like you are adrift in a river with a strong current.
Thus, it helps to prepare before you even set foot in your first show home. One of the steps you can take is to learn about the most common mistakes for homebuyers, allowing you to spot and avoid them.
Get a Mortgage First
Nerd Wallet discusses the mistakes homebuyers make which can be frustrating, time-consuming or even costly. Some of them may even cost you your dream home. For example, you want to shop around for a mortgage before you start looking for a home. Learning how much you can borrow will allow you to determine your lowest price range, as well as your highest. This will save you the heartache of falling in love with a home that is simply far beyond your budget.
Make a Detailed Budget
Speaking of budget, remember to factor in expenses that the bank will not care about when they qualify you for a mortgage. This can include utilities like oil or gas, along with things like cable and internet. Factor in pricey maintenance and repairs, too. Things like roof replacement or having to buy new appliances can easily rack up tens of thousands of dollars.
Finally, make sure your credit report is free of errors and accurately reflects your personal credit information. This is what a lender will use to determine your mortgage. You do not want a mistake preventing you from getting the home you truly want.