It’s easy to make mistakes on something you’ve never done before. Don’t look over these mistakes that first-time homebuyers typically make – it could save you in the long run!

Shopping for a house before getting pre-approved

Who wouldn’t want to start looking for their dream home right away? That’s the best part of the process! But let’s pause – first you need to find your lender. Once you’ve found your trusted lender, it’s time to get pre-approved. The pre-approval process involves a review of your income and expenses; while also proving to sellers that you are committed and can take on the cost of the home. Once you’ve been pre-approved, the search is on!

 Overlooking first-time home buyer programs

There are several loan options available with incentives for first-time homebuyers. Ask your lender what programs are available to you in your state. There are sometimes programs with income or sales price limits, so it’s important to make sure you do your research and consult with a loan professional before applying.

Using all your savings on the down payment

There are other fees, like closing costs and moving expenses that you’ll need to account for when purchasing a home. Plus, there could be various repairs needed once you move in. You’ll want to make sure you factor in all these things and save accordingly!

Underestimating recurring costs of homeownership

On top of monthly utility bills, you’ll likely pay bills like homeowners’ association (HOA) fees. Before making a decision on the home, talk with your real estate agent who can help you determine the typical cost of property taxes and insurance. You can also ask the seller what their payments have been.

Failing to check your credit report

Make sure to ask your lender if you can see your credit report. You’ll want to review it for any potential errors and to make improvements where applicable. Sometimes fixing your credit score is very simple, and getting access to your credit report helps you identify how to make that quick fix.

Buying more home than you can afford

Although you may be able to afford the home based on the initial mortgage approval estimate, doesn’t mean you actually can. Your debt-to-income (DTI) ratio doesn’t take into account your total monthly expenses, such as groceries and health insurance.

Moving too quickly

Buying a home is a big deal that comes with a hefty cost. If you rush the process, you risk not saving enough money for fees that will come up, like closing costs. When planning to buy a home, make sure your credit is in good standing. Building up your credit, paying down debt, and saving more money all help you to be able to afford your home.