Common Mistakes First-Time Homebuyers Make

Due to a lack of experience and knowledge, first-time homeowners seem destined to make mistakes when buying their first home. Before you buy your first home, make sure you are aware of these mistakes and understand how to avoid them. We want you to love your new home, not live with regrets.  Here is a list of 5 common mistakes that people make when buying their first home.     

1. Not Having a Set Budget.  

When buying a home, it is crucial to know how much you can actually afford to spend on the house.   It is important to find out how much the bank is going to lend you before you establish your budget. You do not want to put yourself in a situation where you thought you could afford the home and then find out later you can’t. Also, look at how much you spend on other bills (cable, insurance, cell phone, etc.) and then decide how much you can afford to spend on your mortgage. Once you have a set budget, only look at homes within your budget so you aren’t tempted to buy a home that you know you cannot afford.      

2. Not Comparing Mortgage Quotes or Not Getting One Before Buying 

You will find that different banks may be willing to offer you more or less money. It is smart to get multiple offers because it could end up saving you a good deal of money. Even worse than not looking at multiple mortgage offers is not getting one at all. Do not just assume that a bank is going to give you a certain amount of money. You should know for sure what your mortgage offer is before you try to buy a house.     

3. Having Too Long of a Wish List 

When it is your first time buying a home, you need to understand that this home will not be perfect. You have to be willing to compromise on certain features of the home and keep your wish list small. It will be easier for you or your real estate agent to find you a home within your budget if you do not ask for a lot of specific and unique features. As this will be your home, and you will ultimately be the one living in it, you have the right to want certain features.  However, it will make the process easier if you keep this list short.     

5. Not Making the Right Size Down Payment 

The size of your down payment determines how much you will be paying each month. If you put down a larger down payment, then your monthly payments will be smaller and vice versa. You may think that putting a small down payment on the home may seem like it is saving you money, but you will have higher monthly payments, and this could hurt you in the future. Base the amount of money you put down on the house on the amount of savings you have that you can afford to spend. If you do not have enough money to make a somewhat substantial down payment, consider waiting to buy a home until you have more in your savings.     

Buying a home for the first time is very exciting and we want to help you avoid common mistakes that many homeowners make the first time they purchase a home. Prevent these 5 mistakes and you will already be on your way to successfully buying a new home!

If you are in the Orange County, CA area and are looking to buy or sell a home, we can help.  JAM Properties, LLC is the area’s premier real estate solutions company with a wealth of knowledge and resources to help you with whatever your real estate needs.  Learn more about us HERE.

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