Are you getting ready to buy your first house? Shopping for a home can be an exciting \u2013 yet intimidating \u2013 experience. There are a lot of big decisions to make, but having some knowledge about the home buying process will make it more manageable. <\/p>\n\n\n\n
Here are some common mistakes first-time homebuyers typically make.<\/p>\n\n\n\n
There\u2019s more to buying a home than just the monthly mortgage\npayment. As a homeowner, you\u2019re also responsible for property taxes,\nhomeowner\u2019s insurance, repairs and maintenance, utilities, possible mortgage\ninsurance, and more.<\/p>\n\n\n\n
Before starting the home search, it\u2019s important to know how\nmuch home you can reasonably afford. Your budget will determine the size and\nfinishes in your home, so you may need to adjust your expectations accordingly.\nPre-approval gives prospective homebuyers the maximum amount lenders will lend.\n<\/p>\n\n\n\n
Remember: pre-approval and pre-qualification are different! Pre-qualification gives you a rough estimate of what you\u2019re likely to qualify for based on the information you provided. In contrast, pre-approval goes a step further by providing the guaranteed amount you\u2019re able to borrow based on a more thorough check of your credit history and financial background. <\/p>\n\n\n\n
Not all lenders are created equally. Fees, rates, and loan amounts can vary substantially by the lender so it\u2019s a good idea to meet with several different lenders to find the right one for you. Reducing the interest rate by just a quarter of a percentage point can save you thousands of dollars over the life of your loan!<\/p>\n\n\n\n
Some homebuyers make the mistake of spending the maximum\napproval amount to purchase a home. You don\u2019t have to borrow the full amount.\nInstead, focus on what monthly mortgage payment you can comfortably afford\n(including the extra homeownership costs!) and let that guide your purchase.\nThat way you can maintain some financial flexibility. <\/p>\n\n\n\n