When you’re in the 20’s or 30’s you don’t think about those questions home buyer should ask. Assuming you know the steps to buy a house and the type of mortgage you need. Realistically, you have no clue what you’re doing. Whether it’s choosing the wrong location or buying an overpriced home, buying a home is major part of your life.
You want to purchase a home with confidence. Here are common mistakes first time home-buyers make and ways to avoid them.
Buying a House Knowing you are Moving Again Soon
We all go through this transition from living in your parent’s house to starting your independent life renting an apartment. As we build our careers and save money, many choose to take the huge step of buying a home. Your job is a big impact in your life just like owning home. You don’t want to buy a property knowing you have a job offer in a different state.
So, is 2018 the year to buy a house? If you are a renter and ready to buy a house, ask yourself if you’re going to stay put for a few years. If yes, it’s the right time to buy. You want to figure out your five-year plan before pulling the trigger on buying a house.
Getting the Wrong Type of Mortgage
Making your first home purchase is a great accomplishment as long as you did your research on mortgage options. Many first-time home buyers hear false statements about putting a 20% down payment. Honestly, that’s not the case, you can buy a house for much less than 20 percent down. Along with popular programs, such FHA Loans and VA Loans, the average median down payment has been 5 percent for first time buyers.
There are loan options available, just be aware of the types of loan products. It’s best to consult with a mortgage expert to help your decision on what is the best loan option for you.
Rushing into a Purchase
Once you find a home, you of course don’t want to miss the opportunity of buying it before someone else does. The next thing you do is rush through the home process. Truthfully, rushing into the process could take money out of your pocket in the long run. For instance,
- If you are new to the area, give yourself some time looking for a home and getting to know the area. Knowing the area you’re interested in is important. Don’t settle in when you aren’t sure about the location.
- If you are newlyweds, give yourself time to adjust to couple life before searching for a home.
- When purchasing a home, make sure to compare interest rate quotes to insure you are getting the best options for your mortgage.
Buying a home requires a lot of time and effort, you want to be fully prepared and make the best decisions possible.
Make sure you are ready to purchase a home, emotionally and financially! When you look for your dream home, remember it’s a huge commitment. Like I said, “You want to purchase a home with confidence.”
If you want a full team of experts to help your ways to avoid them we’re happy to help! Please don’t hesitate to reach out to us, we look forward to hearing from you!
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