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First-time homebuyer mistakes to avoid

Shot of a young couple working on their finances together at home

It’s easy to get overwhelmed when you’re faced with the many decisions that come with the process of buying a home – especially if you’re buying one for the first time. Knowing what you should and shouldn’t do will be a great help in making the process as smooth and efficient as possible.

Here are some of the most common home-buying mistakes and how you can avoid them:

  1. Looking at houses before getting a mortgage pre-approval

    Securing a mortgage pre-approval is the first and most important step when buying a home. A pre-approval, while not a guarantee that you will ultimately qualify for the loan, involves a lender taking a look at your credit rating and finances and determining the amount they’re willing to loan you as well as the interest rate. It gives you an idea of how much you can spend on a home and it shows sellers that you’re a serious buyer who can obtain the needed financing.

    Once you make the decision to buy a home, get your financial information in order and talk to different lenders about becoming pre-approved for a mortgage.

  2. Spending all savings on buying a home

    Another common mistake that first-time home buyers make is using up all of their savings on the down payment. This will leave you with no extra money in the event of an emergency. Assess your finances, decide on a budget that will work best for you, and make sure to pad it so you won’t end up scrambling for money in case the unexpected happens.

  3. Underestimating the hidden costs of owning a home

    The sales price of your future home is not the only thing you need to consider when buying a house. Owning a home also comes with hidden costs such as maintenance and repairs, utilities, and moving expenses. Do your due diligence – find out what the usual utilities cost is, the HOA fee (the property one), the property taxes in your particular neighborhood, and don’t forget to include maintenance costs.

  4. Becoming emotionally attached to a house

    A home is an emotional as well as a financial investment, so it’s no surprise why many buyers get easily attached to a property they like. Try to maintain your objectivity, however. Getting emotionally attached to a home could end up costing you in the future, especially if it blinds you to the home’s flaws. Check out at least several houses and create a list of pros and cons before you decide on which home to buy.

  5. Forgoing the home inspection

    It’s always best to get your new home inspected by a professional home inspector, even if your home looks flawless and brand-new. Home inspections can alert you to any defects or problems in the home that you may have missed.

  6. Not working with a real estate agent

    Real estate agents are qualified professionals who have the necessary knowledge and experience in buying and selling homes. It’s important to work with one because they can assist you during every step of the home buying process. Real estate agents can also use their network and local area knowledge to help you find your dream home more efficiently.

Interested in Fort Collins, Windsor or Loveland homes for sale? I’d love to help you find the right home and neighborhood in the area. Give me a call at (970) 889-0307 or email matt(at)welcometonoco(dotted)com.