After receiving generous monetary gifts from family and friends for your wedding, you’ve decided to buy your first home. This should be a piece of cake, you and your new spouse agree, because you believe you have just enough for a hefty down payment and can afford monthly mortgage payments. With a sizable amount, you must not squander your newfound cache of cash, so read about mistakes first-time home buyers should avoid before buying your dream home.
Ignoring Your Budget
Before embarking on house hunting, carefully calculate your budget, tucking in the purchase of house with the rest of the expenses. If you don’t use a budget, create one, adding home expenses like a down payment, mortgage payments, real estate fees, home maintenance and all sorts of hidden costs associated with purchasing a home like moving company services. Start saving money, so you have a nice nest egg to tap for the purchase and unexpected emergencies.
Avoiding Credit Checks
Who’s afraid of a credit check? Even if possible infractions appear listed on yours, it’s better to know and remedy or remove them instead of getting your loan application rejected and losing a great home. In case your financial circumstances change, Bankrate recommends allowing “wiggle room” in between what you’re qualified for and what you can comfortably afford with leftovers. Figuring out your credit score also gives you an idea of how good a loan you’ll get.
Not Prequalifying For Loans or Investigating Different Loan Options
Speaking of loans, have you been preapproved for a loan yet? Experts like Bankrate agree you should get prequalified even if you’re not ready to start house hunting in order to know how much money a loan will offer and how your credit appears. When searching for the proper loan and best lender, investigate options that work with your financial circumstances and loan needs, says CNBC. If you’re not happy with how much you can borrow, consider renting for a little longer until what you want is within your reach, they continue.
Doing the Work Yourself
Maybe you can handle DIY projects that come with owning a home, but as for searching for and negotiating home sales don’t go it alone. Hire a real estate agent to guide you. That being said, remember that even though some realtors are awesome and highly qualified not everything they suggest is law, especially if they’re the listing agent for the property you want, says Trulia. Go with your gut when deciding to buy a home.
Falling in Love at First Sight
Never fall in love with a house before getting a background check on everything about your new romantic interest. Stalk out the neighborhood at various times to get acquainted with it in its natural state. Assess how the house and neighborhood will appreciate and if selling it in the future will pay off or cause you more headaches. Neglecting to get a home inspection before you make things official with your new love could cause regret. An inspection will uncover any deal breaking flaws that could make you fall out of love.
Hiring Just Any Moving Company
Although there are plenty of moving companies out there, make sure you hire a reputable one that provides you with the services you need and safeguards you from common moving problems. At FlatRate Moving, our moving specialists will assist you in scheduling a mistake-free move within your budget.