Top 10 Mistakes First-Time Homebuyers Make (And How to Avoid Them)
Buying your first home is an exciting milestone, but it can also feel overwhelming. To help you navigate the process smoothly and confidently, we’ve compiled a list of the top 10 mistakes first-time homebuyers often make—and how you can avoid them. Let’s dive in!
1. Not Getting Pre-Approved for a Mortgage
Skipping mortgage pre-approval can leave you unprepared when it comes to understanding your budget. Sellers are more likely to take your offer seriously if you’re pre-approved.
How to Avoid It: Start by meeting with a trusted lender to get pre-approved and know exactly what you can afford. Ask us for lender recommendations- any of the lenders on this list will help you when making an offer as they are tried and true by our other clients. They are all local, reputable, and informative!
2. Focusing Only on the Monthly Payment
It’s easy to focus on the monthly mortgage payment, but don’t forget about other costs like property taxes and homeowner’s insurance. You will also want to have some money set aside for maintenance.
How to Avoid It: Work with your lender and real estate agent to create a full budget that includes a full breakdown of what your monthly would look like.
3. Not Understanding Closing Costs
Many buyers underestimate the cost of closing, which can range from 4% to 8% of the purchase price. It varies greatly in our area.
How to Avoid It: Ask your lender for a detailed breakdown of closing costs early in the process.
4. Skipping the Home Inspection
Opting out of a home inspection to save money can be a costly mistake if hidden issues arise later. Now, a home inspection does not protect you against everything in a home but it does help mitigate risk and educate the buyer on their new home.
How to Avoid It: Invest in a professional home inspection to identify any potential problems before you commit.
5. Falling in Love With the First Home You See
It’s tempting to buy the first house that catches your eye, but rushing into a decision could lead to regrets. I have had many buyers purchase the first house we see together. In the digital age where people shop for many months online prior to actually stepping foot in a home, most buyers are more educated on what is available within their price range in a particular market. It is still good to check out the next home on your tour list- it will either solidify your decision or help you to lower any impulsiveness.
How to Avoid It: Keep an open mind and view multiple properties to compare options before making your final decision.
6. Overextending Your Budget
Buying at the top of your price range can leave little room for unexpected expenses or future goals.
How to Avoid It: Stick to a budget that allows for flexibility and financial security.
7. Ignoring the Neighborhood
A beautiful home in the wrong location can affect your happiness and long-term investment.
How to Avoid It: Research neighborhoods thoroughly, considering factors like commute times, schools, and local amenities. Before or after the showing, drive around and get a feel for the neighborhood.
8. Forgetting About Resale Value
Your first home might not be your forever home, so consider its resale potential.
How to Avoid It: Look for homes in areas with growing property values and desirable features like a good school district or walkable community.
9. Making Large Purchases Before Closing
Buying big-ticket items like furniture or a new car before closing can affect your credit score and loan approval.
How to Avoid It: Wait until after closing to make any significant financial moves.
10. Going It Alone
Navigating the homebuying process without professional guidance can lead to costly mistakes.
How to Avoid It: Partner with a knowledgeable real estate agent who can guide you through every step of the process. This is why the Shaina McAndrews Team gets most of its clients referred to them! We educate and inform our buyers before they make a big decision.
The Bottom Line
Buying your first home is a journey filled with opportunities and decisions. By avoiding these common pitfalls and working with experienced professionals, you can turn your dream of homeownership into reality.
Ready to take the next step? Contact the Shaina McAndrews Team to schedule a consultation and get personalized guidance tailored to your needs. Visit MontCoLiving.com for more resources to make your homebuying experience a success!
