Common First Home Buyer Mistakes, Part One - As a first home buyer, buying a home is an exciting whirlwind full of new things and items to consider at each new turn
As a first home buyer, buying a home is an exciting whirlwind full of new
things and items to consider at each new turn. From renting to home ownership,
many families are making their dreams come alive by investing in their future
and building a foundation for years to come. Buying one’s first home is nothing
short of a lifetime achievement. Though the purchasing of an FHA
Orange County,
Los Angeles, or Ventura
approved home marks a successful time, there are often mistakes many 1st home
buyers make that can hurt them later down the road. As a FHA 1st time home
buyer, learn how to avoid the top ten most common mistakes many first home
buyers make:
1. FAILURE TO BUDGET PROPERLY = Don’t make the mistake
about estimating your budget. Be sure to take time to review, create, and check
your budget as each month passes prior to your closing. This process will help
provide you the confirmation and assurance you may need as a first home buyer
preparing to hold a FHA loan. Ideally, check back in the last 12 months and
account for all of your expenses as well as map out the road ahead in saving
for your down payment. This, though tedious and not the fun part of buying a
home, will help you paint the realty of your financial abilities and or the
lack there of. Better to know ahead of time and be prepared than to live in
wishful thinking. That only gets you into trouble.
2. DON’T TAKE A REAL AGENT’S ADVICE ON YOUR BUDGET = Real
estate agents tend to lead FHA 1st time home buyers using a rough estimate on a
home loan amount you can afford versus professional review and confirmation.
They often do this estimation through calculating the base of your household
income. Though this approach is tempting, do not accept their buying budget for
yours. Make sure you talk with a loan officer or broker regarding your monthly
budget and possible monthly payments for an FHA loan. This, and only this, will
provide you the comfort needed in making your monthly payments on time and with
ease.
3. NO NEED TO IMPRESS = As a first home buyer, don’t feed
into the pressure of buying a home similar or above that of others; especially
when the purchase price is above your price range. No matter how beautiful the
more expensive home is, once you find yourself paying out the monthly mortgage
payments, the stress of having higher payments will far outweigh the happiness
of a affordable home.
4. DIDN’T DO YOUR MARKET HOMEWORK = Homes have unique
characteristics. Their size, location, and condition all play a vital role in
calculating their worth and longevity which is why it is important as first
home buyers to really do your homework on all the items related to the homes
your are considering. Make sure you review the near by shopping centers,
freeways, possible future construction developments, schools, and surround
neighborhoods. By knowing as much as possible about each home and all that
comes along with it, you will be able to make a better informed decision on the
home you select to purchase and its’ value.
5. DON’T EXPECT UNPROMISED FUNDS = Many 1st home buyers
purchase their first home in the earlier stages of their careers which leads to
the notion that the home mortgage payments will get easier as their career
progresses. This is not promised and therefore, should not be considered in
your decision to purchase a home with payments that are not comfortable for you
in where you are today. With the possibility of employment and job salaries not
increasing, it is best advised to budget off of what you currently have and not
in what you hope to have.
Join us in our next post for the remaining 6 – 10 common mistakes made by
1st time home buyers… 6. LACK OF SAVINGS 7. DIDN’T SHOP AROUND FOR THE RIGHT LENDER 8. NOT CONSIDERING MORTGAGE FEES 9. NOT CONSIDERING AN FHA LOAN PROGRAM 10. AVOIDING MORTGAGE PAYMENT RED FLAGS
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