11 Mistakes First-Time Homebuyers Make

As a first-time homebuyer, purchasing a house can be intimidating and nerve-racking. However, knowing which common mistakes not to make can ensure smooth sailing as you navigate the real estate waters for the first time. Read on to find 11 mistakes to avoid on your home-buying journey.
1. Not saving at least 10% for a down payment.
A general rule of thumb for first-time homebuyers is to save at least 10% of the home’s cost for a down payment.  Of course the more you save up toward a down payment, the more appealing your offer is. Consider budgeting or cutting costs to save more money.
2. Not establishing good credit.
It’s important to establish a good credit score BEFORE you start house hunting. Without a good credit score you’ll have a hard time getting a mortgage, and without a mortgage you’ll have a hard time getting that house you want. Plus, the better your score, the better your interest rate.
3. House hunting before getting pre-approved.
Looking at homes before getting pre-approved for a mortgage can end up being a complete waste of time. Get pre-approved prior to your search so you know what you can afford. Pre-approval will also strengthen your offer on a home.
4. Using an unexperienced realtor (or no realtor at all).
Purchasing a home, especially for the first time, is a complicated process. As a first-time homebuyer that isn’t familiar with the real estate world, it’s important to hire a trustworthy realtor who knows just what he or she is doing.
5. Buying a home you really can’t afford.
Just because you were approved for a mortgage that can buy you an expensive home, doesn’t mean you can actually afford the home. Be sure to take into consideration other payments in addition to your mortgagee such as homeowners insurance, property taxes, utilities and other bills.
6. Finding your “dream home” too quickly.
Don’t get hung up on one home after only a week of searching. “Love is blind,” and getting too attached too quickly might cause you to overlook any issues (or the price!). Be sure to have a full picture of a home’s cons before making any decisions. Also be sure to consider all of your options. New homes come on the market weekly, so you never know what will pop up!
7. Not taking notice of location.
You may think you found the perfect house, but is it in the perfect location? Is the home close to the grocery store and other shops? Is it far from the main road? The location of the home must fit into your family’s lifestyle, whether that’s being in the center of the hustle and bustle of town, or being secluded on your own large piece of land.
8. Focusing on easy fixes.
When looking at a home, you must look past the ugly-colored walls and dirty old carpets. The bones of the home are what’s key. Instead of focusing on these simple cosmetic fixes, take into account the roof, HVAC system, plumbing, electric and construction quality.
9. Overlooking comparable sales.
Comparable sales, or “comps,” help determine the true market value of your home. Comps usually have similar features and are located in the same area. Your real estate agent can help you find comps for the home you’re looking to buy, which can affect both your offer and the amount of the loan you’re approved for.
10. Skipping the inspection.
You might consider doing this in an attempt to get the seller to choose your offer over others, but in the end it’s not worth it. An inspection will help you identify any serious damage and decide if the home is worth the purchase, avoiding a future full of expensive repairs.
11. Making a big purchase prior to closing.
Banks and lenders will be keeping an eye on your credit report before releasing your loan. A change in your financial situation such as a new car you’re financing may affect their approval for your loan.