First-time home buyers often find themselves making mistakes concerning their home purchase. Why? Because It’s easy to get excited for finally, you’ll be buying your own home. However, reckless homebuying can lead to costly problems in the long run. You will either end up either loving your new house or regretting the home purchase.
If you want a better home buying experience, make sure to avoid the following.
House Hunting Without Knowing How Much You Can Afford
A common mistake among homebuyers is looking for houses for sale before checking how much of a house they can afford. If you plan on taking a mortgage to buy a home, then you’ll need to get a pre-approval and get prequalified first. This will show you how much loan amount you can borrow. By knowing the highest price of a house you can afford, you can start looking for homes within your price range. This saves you the disappointment that comes with house shopping without a price range, only to find out you can afford that house you wanted.
Limiting Yourself With One Lender
It is your right as a homeowner to shop for mortgage lenders. Don’t limit yourself by putting your trust on the first mortgage lender you cross paths with. Ask for recommendations, do your research, check for their reviews, and set up an appointment where you can ask questions regarding the loan. This will help you find the right mortgage lender for you.
Not Considering FHA Loans Grand Prairie
When you have a credit score of 580 and below, you can apply for FHA Loans Grand Prairie. You can qualify for such mortgage type as long as you have minimal requirements. You will need at least 3.5% down payment and stable employment history and income, to name a few. You can even use a downpayment gift to cover for your down payment.
Failure To Consult A Lawyer
People assume that they don’t need a real estate lawyer when buying a house. While not all states require you to have a lawyer for a home purchase, hiring a lawyer will give you peace mind. A legal representative can help you check on the terms and agreements of your mortgage. With buying a house a legal transaction, it only pays to have an expert help you understand all that the contract and mortgage agreement entails.
Stretching your Budget
Let’s say you got approved for a loan and you can borrow up to $380,000. Just because your lender said, you can borrow and afford $380,000.00 already meant you should maximize this amount. Stretching your budget can put a strain on your wallet. You will be the one who will pay back the loan, so it’s best to gauge yourself on how much you can comfortably pay your lender monthly.
Skipping A Home Inspection
If you want to make the most out of your investment, don’t skip the home inspection. Just because a seller is in a hurry to sell their home already meant you should go ahead and buy the house without having it inspected first. A home inspection will tell you the real value of the house and what repairs and maintenance it needs. Waiting for the home inspection results will enable you to gauge if you the house is still worth the investment despite the problems.