You have decided to purchase your first home. While at it, knowing where to start as a first time homebuyer can be pretty helpful. We want to point out some common mistakes first-time homebuyers make. I hope to save you money and avoid unnecessary headaches.
Get Pre-Qualified by a Local Lender
It is a standard error not to get pre-qualified by a local lender or mortgage officer for a loan. People sometimes skip pre-qualification because they are worried about the outcome or have concerns about their income or credit. Pre-qualification is also impossible for people who are so sure they have good credit or a good income that they don’t think there will be any difficulties getting qualified.
There are many reasons why you wouldn’t want that. There are many loan programs on the market. If you are eligible, some programs will allow you to put no money down. Many programs have meager fixed rates. However, different programs have different requirements regarding where and what kind of home you can purchase. It is essential to be informed about these details upfront.
Ask for Recommendations
Talk to your family members. Talk to your co-workers. It’s a good idea to ask your co-workers for recommendations. Online reviews are easy to find, and you can also ask for recommendations from people you meet online. A good agent and lender will have people willing to share their great experiences.
Get a Home Inspection
Buyers often skip this step because they are concerned about the price. A home inspection will cost a couple of hundred dollars. A house purchase is one of the most significant investments you will ever make. Protecting that investment is crucial for the few hundred dollars. Buyers sometimes don’t have to go through a home inspection, even though they are construction experts.
However, it is a very emotional time when buying a house. Even if you have a strong construction background, it’s easy to overlook things. So bring in someone who will spend at least two to three hours inspecting the house. It’s a great way to ensure that you are protected. This helps you if you need to amend the contract or ask for repairs. Documentation from a third party is not part or parcel of the transaction.