Getting ready to buy your first home? This can be an exciting time, but it can also leave you feeling overwhelmed. While you’re searching for your dream home, here are 4 rookie mistakes to avoid which could end up costing you a lot of money.
- Getting too emotionally attached. Buying a home is a huge investment. Because of that, take some time to look at several homes that you love so if one falls through there are other choices.
- Assuming you have no rules to follow as a homeowner. Some homes have deed restrictions that come with conditions. Take some time read and understand the restrictions before signing any paperwork.
- Not saving enough money. Saving up enough money for a down payment is a big deal, but you should also save a few months worth of mortgage payments in reserve. Putting money aside is also a great idea for any household essentials you may want to get once you’ve moved into your new home.
- Not getting preapproved for a loan. You’ve probably crunched the numbers and know how much you can afford, but if you want your offer to be taken seriously by the seller, get a proof of income and assets from your lender. This can be a simple pre-approval letter to show the lender your trustworthy.
If you need to apply for a home loan, getting pre-approved before approaching a real estate agent (or searching for your dream home) is a smart move.
Want to learn what other rookie mistakes to avoid? Check out this article by Home Value Plus.