Buying a house for the first time isn’t easy; it has so many steps involved that mistakes are highly probable for first-time home buyers. Here are ten all-time greatest mistakes of home buying and how to avoid them.

buying a home for the first time involves many steps, and one mistake can end up delaying or stopping entirely the purchase of your ideal dream home. While many first-time home buyer mistakes are minor, there are some that simply lead to disaster in terms of unnecessary delays in the process as well as future financial problems. Here are the ten most common mistakes made by first time home buyers.

Top 10 Common Homebuyer Mistakes

1) Ignoring Your Credit Score Before Getting a Pre-approval for a Loan

Ignoring or not monitoring your credit score during the entire home-buying process can lead to untreated problems that will affect your loan or results in loan rates and terms that are less-than-promising.

A lender checks your report for the approval process, but it is re-checked just before the closing date, and last-minute changes to your report can change your loan. For instance, you apply for a credit card now; it can reflect on your credit score. As a result, you might face difficulties getting a loan.

2) Buying a Home Beyond Your Budget

Your initial mortgage approval marks the price range of your house. Still, this amount will not usually fit perfectly within your budget because of the difference in monthly expenses against overall debt-to-income ratio (DTI).

While assessing the finances of an applicant, lenders check their DTI to estimate how percentage of monthly income will go to paying debts. But you have to remember that all other monthly expenses will add up very quickly. So, borrowing the entire value of the mortgage approved may make life difficult as you seek to find a way to pay all of your other monthly commitments.

3) Waiver Of A Home Inspection

It helps avoid future worries with your house, and home inspection is part of it. There are a few home buyers who skip the inspection schedule because the house is really new-bought, and it’s a seller’s market where bidding wars happen. However, a home inspection really should not overlook.

Home inspections protect lenders and buyers in serious situations defined as structural or core system faults. Home inspection reveals existing issues within the house that can be used to facilitate the purchase at a reduced price from a seller.

4) Making an Inadequate Down Payment

Your down payment affects your interest rate even on monthly installments you would have to pay on your home loan. Many think you have to put down 20 percent of the purchase price day in and out, and that is not always true-you can put less in as long as you are open to paying  private mortgage insurance (PMI). It would be well worth it if you could put in a bigger down payment and avoid that added expense.

5) Using Up All of Your Savings

Owning a home is an expensive affair. However, it is essential that one saves up something more than what he has anticipated spending on buying the house. 

6) Focusing on the House Rather Than the Neighbourhood

Of course, you want a house for all your boxes and a perfect fit according to your checklist. But sometimes, being choosy about the appearance of the house becomes shortsighted if you then get into an area that you do not like or find troublesome.

You may then come to love the house but not the neighborhood. Therefore, finding the right locality is very essential to set pace for your life and family. Identify what your locality prioritizes and study it. You can research into school ratings, commute times, and other such aspects that suit your needs or preferences. You can go visiting the neighborhood a number of times so as to better understand the flow of traffic and see if it is an area that would interest you to be in.

7) Making Emotional Decisions

It’s just too easy to get carried away when strolling through your perfect home. There is one new memory to be built at every corner, and you may already be imagining your kids playing outside or in the bathtub.

Always base investment on factual evidence and not emotional sentiments. Buying a home is a big emotional milestone and at the same time one of the biggest financial milestones. Don’t forget that it’s not just a house; more like the biggest investment you’ll make in your whole life.

8) Rushing to Make an Offer

First-time home buyers must not hurry when buying a home, no matter how beautiful it may appear to them. Remember that your offer acts as an agreement to pay if the seller accepts it, so make sure you’re completely sure you want the house before making an offer.

9) Waiting Too Long

However, waiting too long to make an offer can cost you the house you’ve been looking for, while waiting for the “perfect” house may cause you to lose sight of other quite good alternatives. Usually, the narrower the searches, the narrower the outcomes, so don’t limit yourself in such a way that you prolong the entire process indefinitely.

10) Not Saving Enough Money

So how much should you put away? A couple of costs you’ll need to consider when buying a house for the first time are:

  • Down payment
  • Closing Fee
  • Property Taxes
  • Homeowners Insurance
  • Home Maintenance Charges
  • Utilities
  • Packer and Movers Costs
  • Homeowners Association (HOA) Fees

Summing Up Mistakes Home Buyers Make

Buying the house can have some sweetness with a lot of bitterness attached. Unless you have some strong hold on the stages involved, you could be carried away in the midst of it all because buying a house is probably one of the biggest financial commitments one can make, and small errors tend to run into huge sums.

Fortunately, you won’t have to repeat first-time home buyer mistakes; learn from those who have gotten the experience ahead of you. If you have friendly and trusted people who have just recently traveled the road, ask them what they have learned in the process – and remember, your real estate agent is there for you.