Purchasing a home has infinite variables, and several things can go wrong. People often lose themselves in the process of buying or looking for a house. The key to making the process as stress-free and straightforward as possible is learning from the mistakes of other first-time homeowners. 

People who have moved through the home purchasing process, from searching for homes to planning finances to making an offer, have experienced pitfalls you can prevent. But today’s newbies can stop the confusing cycle. Here are seven mistakes first-time homebuyers should avoid.

1. Moving too fast 

Purchasing a home can be a complex process, particularly when you get into the crux of the mortgage process. Rushing the process can cost you later on. Running the process means you might be unable to save adequately for a down payment and closing costs. Speeding towards the closing process can also keep you from addressing items on your credit report that may prevent you from securing more favorable loan terms. We at Atlantic Building Inspections recommend mapping out the homebuying timeline at least a year in advance. It takes months, or even years, to repair poor credit and save for a sizeable down payment. Then, work on boosting your credit score, paying debt, and saving money to put you in a better position to get preapproved.

2. Not understanding how much budget to maintain for a house 

Without understanding which houses you can afford, you might end up wasting time. You could end up searching for houses that you can’t afford yet, or visiting homes that are below your price level. For many first-time buyers, the goal should be to buy a house and get a loan with a comfortable monthly payment that won’t keep you up at night. Sometimes it is ideal to aim low. We recommend using a mortgage affordability calculator to help you know what price range is cost-effective, what’s the stretch, and what’s aggressive.

3. Skipping home inspections 

When buying your first home, internal house damage is the last thing you want. One of the easiest ways to avoid dangers is to get a home inspection on the home you’re interested in purchasing. It may be tempting to skip this step. After all, an inspection requires energy, time, and money. But you may find that the cost of an inspection is worth it. Inspections reveal big problems, such as electrical wiring issues or structural damage. It is ideal to be present during the inspection. You learn a lot about the house while listening to the inspector and touring the premises. We at Atlantic Building Inspections can help with this process and make it easy for you to make the right buying decision.

4. Consulting with a single lender

Explore your lending choices and talk with multiple mortgage lenders to shop for the best deals. Different brokers and lenders can offer varying interest rates and mortgage deals. Your lender will also be a valuable resource for home purchasing education and professional recommendations, so consider which lenders you work well with and trust.

5. Going for a house that doesn’t fit your lifestyle 

Maybe you are happier with a less expensive space, or you would like to move on to a bigger home when your family starts to expand. Whatever the reason, you get to decide if you wish to purchase a house that costs less than you are qualified for.

6. Getting mortgage pre-qualification without pre-approval

Mortgage pre-qualification can offer you an estimate of what loans and interest rates you are eligible for, but it is not a guarantee. A mortgage pre-approval letter guarantees a mortgage amount and interest rate and offers you the buying power to submit an offer on the house. If you are serious about home buying, it is best to get a mortgage pre-approval letter.

7. Miscalculating the hidden costs of homeownership

As a new home comer, there are many other potential expenses to look out for, like mortgage insurance, property tax, hazard insurance, homeowners’ insurance, maintenance, repairs and utilities, and more. Not having an adequate cushion in your monthly budget can quickly put you in a danger zone if you are not prepared. We recommend connecting with a real estate agent who can help you crunch numbers on taxes, utility bills, and mortgage insurance. Aim to set aside at least 1% to 4% of the home’s purchase price annually for maintenance expenses.

It is always best to connect with a home inspection company before finalizing the sale as a new homeowner. Home inspectors help evaluate a house to identify significant home repairs, structural issues, and the condition of appliances. The only goal is to make sure the home is liveable and that everyone fully understands the house’s needs before the sale is finalized. 

At Atlantic Building Inspections, we prepare a home inspector’s report to ensure the house is a good fit and negotiate any needed repairs. For more information, connect with us today!