Shopping for your first home has challenges that go beyond curb appeal and interior features. Here are five common mistakes first-time homebuyers should avoid.
Thinking about buying your first home? Before you can unlock the door to homeownership, you have to take some important first steps. From finding the perfect location to financing your purchase, shopping for your first home has challenges that go beyond curb appeal and interior features.
Some of the important steps to homeownership include:
• Getting approved for a mortgage.
• Choosing the right real estate agent.
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• Finding the right home that fits your budget.
Here are five common mistakes first-time homebuyers should avoid.
1. More to it than mortgage payments
Many first-time homebuyers decide to buy when they feel ready for a mortgage. But just because they can afford the mortgage payment doesn’t mean they can afford to own a home, says New York attorney Rafael Castellanos, president of Expert Title Insurance.
“They have an idea of what their mortgage payment is going to be, but they don’t realize there’s much more to it,” he says.
Property insurance, taxes, homeowners association dues, maintenance, and higher electric and water bills are some of the costs that first-time homebuyers tend to overlook when shopping for a place.
“Keep in mind property taxes and insurance have a tendency of going up every year,” Castellanos says. “Even if you can afford it now, ask yourself if you’ll be able to afford the increased costs later.”
2. Looking for a home first and a loan later
Homebuying doesn’t begin with home searching. It begins with a mortgage prequalification — unless you’re lucky to have enough money to pay cash for your first house.
Often, first-time homebuyers “are afraid to get prequalified,” says Steve Anderson, a broker and owner at Re/Max Benchmark Realty in Las…