So you have decided it's time to buy your first home!!! Congratulations!!!
There’s a lot to learn when you make the decision to buy a home and you probably are wondering where to start. Well, we want to help. First time home buyers make mistakes all the time and we thought it might be helpful for you to know how to avoid some of these pitfalls.
This bog is going to be broken up, so that you can stop and think about each of these problems and figure out a game plan for yourself on what your next step is to be. I will tell you that calling us to start the process will help you avoid all of these!!! Shameful plug, yes...
Next mistake made by so many buyers....
Not leaving room in the budget for other expenses.
There’s more money involved in the home buying and owning process outside of your down payment and monthly mortgage payments. There are closing costs involved in purchasing and your loan officer will go over those costs so you are prepared. This is another reason why it's so important to sit down with your lender, so that you understand these additional costs. There's items that are prepaid...your inspections, your appraisal and credit report and then there are items that you will be paying in escrow. Most of these items have to do with your new loan and will vary depending on the type of loan you are going to be using.
Additionally, owning is much different than renting. As a new homeowner, you will have property taxes, home insurance, and public utilities to pay for. Plus there is the maintenance of the home itself. If something breaks, you have to fix it. Make sure you leave enough wiggle room to not only pay these items, but to save some each month in case of an emergency. You don't want to have your hot water heater go out and not have the funds to be able to replace it. We can negotiate a home warranty in your purchase agreement which will cover a good portion of the home's appliances, etc. during the first year and this will help.
It's a great idea, to not only sit down with your loan officer to go over the expenses during escrow but also to talk to your real estate agent about what to expect after you close escrow. That's what these professionals are here to do...help you understand not only the process, but what else to be prepared for!
This blog post is a continuation in a series of blog posts about avoiding the 10 biggest mistakes by home buyers. To continue reading, the links are below -
Mistake #1 - Not getting preapproved
Mistake #2 - Not maximizing your credit score
Search for a home in Elk Grove now!
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