Top five mistakes first time home buyers make

Finding and financing your dream home is a long and arduous process and is one of the biggest commitments you'll ever make in your life. Buying the right property and obtaining the right mortgage is a crucial part of the home buying process, especially for first time home buyers.

Some of the common mistakes first time home buyers make are:

1. They buy a home before they are ready for the responsibilities of home ownership
2. They do not spend enough time researching the market to find the right Realtor or the right property.
3. They end up buying more house' than they can afford.
4. They do not get the property properly inspected prior to closing.
5. They obtain the wrong type of mortgage.

1. Owning your home is a huge responsibility and first time home buyers have to realize that it is totally different from renting. Buying is easy, selling is not. So once committed, it'll be for the long haul. Attend seminars conducted by mortgage companies and credit unions. They provide valuable insight into the home ownership process.
2. There are several resources that'll help you window shop for homes. The Internet is a great tool. Also locate a reliable and experienced real estate agent. You don't have to pay them any commission; they are paid by the seller. Decide a location that fits your needs and narrow down the kind of home you desire how many bedrooms, what square footage, age of the house etc. If you know what kind of property you are looking to buy then it'll be easy for the Realtor to show you homes that are closer to your liking.
3. Homeownership comes with many expenses. It starts with up front money like down payment, pre-paids, and closing costs. Factor in money for property taxes, homeowners' insurance, and HOA dues if any. These are scheduled expenses and will more than likely increase over time. Then there are unscheduled expenses like repairs and maintenance. One way of finding out what you can afford is by getting a pre-approval from a mortgage company.
Most of these expenses are directly proportionate to the price of the house and so it is critical that you buy a property that you can afford in the long run.
4. Hire a reliable property inspector and have the house thoroughly inspected. Roof and foundation are two critical areas that need particular attention. Although there are laws that require disclosure of any issues a property may have, if the owner is genuinely unaware of an issue then you'll be stuck with a lemon.
5. Obtaining the correct type of mortgage is crucial. Fixed or Adjustable? 15 years or 30 years? Shop around for rates, especially if you have great credit scores. Avoid loans that come with a pre-payment penalty clause. Many mortgage companies have special programs for first time home buyers. Be sure to take advantage of those benefits.

Learn more about this author, Robin.
Click here to send this author comments or questions.

---

Add your voice

Know something about Top five mistakes first-time home buyers make?
We want to hear your view. Write now!