First Time Home Buyer Mistakes don’t make these mistake

Shopping For A Home First

When people decide to become homeowners for the first time, they naturally want to start looking at houses. This is a mistake, though; looking for a house before you know your budget or have financing lined up will lead you to disappointment. There are several other steps to take before you should start looking for houses.

Not Assessing Your Finances

Before you can be ready to buy a house, you have to be financially ready for the payments, credit check, and other fees and costs associated with becoming a homeowner.

Neglecting Your Credit Report

Your mortgage lender will check all three of your credit reports, and your credit score (most likely your FICO score). If you don’t know what’s in those reports, you’re not ready to buy a home.

Before you talk to potential lenders, you should pull your own credit reports and check your score. Do this at least a month or more in advance, so you have time to correct any outdated or inaccurate items you may find.

Doing It Alone

There are multitudes professionals of different stripes waiting to help you become a homeowner. Real estate agents, of course, are probably essential. An experienced home buyer might try buying a house themselves, but first time home buyers should always seek the help of a buyer’s agent.

Spending Every Dime You Have

You’ve saved up for a home, but that shouldn’t be the only thing you’re saving for. You’ve got to keep your emergency savings fund intact.

Once you become a homeowner, there will be more potential kinds of emergencies you could face that might require an emergency savings fund. Some kinds of home emergencies will need to be addressed immediately, and if you don’t have the funds on hand for an emergency plumber, electrician, etc., then you could end up in serious financial trouble.

Missing Out On Special Programs

There are special kinds of loans and programs to help first time home buyers, and if you jump straight into the purchase without getting the right assistance, you could miss out.

There may be special loans you can qualify for, like VA, USDA and FHA loans. A mortgage coach will make sure you explore all of these options, along with any local programs that might be available.

Expecting Perfection

If you’re insistent that everything be perfect, you’ll be paralyzed during the buying process. There will always be compromises you have to make, and first time home buyers especially have to let go of the idea that they will find the perfect home their first time.