Summary: This blog highlights common mistakes that first-time home buyers often make and offers advice to avoid them.
- Not Knowing Your Budget: Overspending can be avoided by using mortgage calculators and getting preapproved for a home loan.
- Rushing the Purchase: Slow down the buying process to ensure you make the best choice.
- Neglecting Finances After Preapproval: Maintain financial stability to ensure your loan approval remains valid.
- Skipping a Real Estate Agent: Utilize an agent to navigate the complex market and negotiate effectively.
There’s a lot to enjoy about being a first-time home buyer. While every home purchase is a major event, there’s something special about the first home you own.
For some, it’s the unique feeling of personal growth that comes from owning the place where you live. For others, it’s the move away from renting and putting your hard-earned money toward an asset that, in many cases, will appreciate over time.
However, there are plenty of pitfalls in the home-buying process, and first-time buyers may be more likely to encounter these issues.
Let’s take a look at some common first-time home buyer mistakes. Of course, we’ll also share helpful advice on what you can do to avoid them!
First-Time Home Buyer Mistake No. 1: Not Knowing Your Budget
Imagine your search for a house leading to the perfect home in the ideal neighborhood. It has all the amenities you want, is in an exceptional school district, and was recently renovated. It all sounds great — until you realize that home is well beyond your budget.
No one wants to fall in love with a house but give it up because of finances. This mistake usually won’t cost you much money, but it can slow down your search and leave you feeling less than happy about the situation.
Here are two suggestions for this common first-time home buyer mistake to avoid:
- Use a mortgage calculator to estimate what you can realistically afford. Realtor.com offers a mortgage calculator that can help you determine an estimated monthly mortgage payment, down payment, and more.
- Get preapproved for a home loan. Successful mortgage preapproval leads to a conditional offer for a home loan from a lender. This helps you understand the limits of your buying power and shows sellers you’re serious about buying a home.
First-Time Home Buyer Mistake No. 2: Wanting to Move Things Along Too Quickly
Every first-time home buyer is excited about owning the place where they live. The desire to get into a home and make it their own can also lead to this first home buyer mistake: moving too quickly.
It can be tempting to put in an offer on the very first home that checks off all of your major wants and needs, for example. Or, to pass on a home inspection to get to closing faster.
Our advice is to take a little time and remember the big picture. Your home is an especially valuable asset and the place you’ll live for years (if not decades) to come. Taking a little time in the buying process can definitely pay off.
You might find a similar home at a lower cost, or in an area you like more, if you keep your home search going for a little while longer. Because Virginia is a caveat emptor state, it’s up to the buyer to complete a home inspection and ensure no major, hidden issues are present.
First-Time Home Buyer Mistake No. 3: Not Watching Your Finances
Mortgage lenders look for financial stability in the individuals and couples to whom they provide home loans. Even when you receive preapproval for a home loan, it’s a conditional offer. Major changes in your credit score, finances, and employment can lead to that offer being rescinded.
So, try to keep things steady when you start your home search, especially after receiving preapproval for a home loan. You should not do any of the following:
- Change jobs.
- Pay off major debt without speaking to your lender first.
- Make major purchases.
- Open or close new lines of credit, or take out other loans.
- Go through any process that requires a hard credit check.
First-Time Home Buyer Mistake No. 4: Not Working with a Real Estate Agent
Real estate is a complex market, making it difficult to navigate without an experienced and qualified professional. It can be tempting to try to save money by working without an agent. However, you’ll have to invest so much time and effort in the process that you won’t get good value in return.
The right real estate agent can help you find the right home in the perfect neighborhood, negotiate on your behalf, and guide you through the process from your first conversation to after closing.
Nikki Lagouros connects you with real estate experience and tools, local insights into Northern Virginia, and a data-driven, client-first approach.
In the market for your first home? Take advantage of everything an experienced and expert real estate agent can offer. Nikki won’t just help you find a home. She’ll help you find the perfect home for you and your family!
Contact Nikki today!