First-Time Home Buyer Mistakes To Avoid

With so much to think about, it’s not surprising that some first-time home buyers make mistakes that come back to bite them. Here are some of the more common mistakes and some tips on how you can avoid them.

Buying A Home For Today Instead Of Tomorrow 

It’s easy to make the mistake of looking for the perfect house for you now, but if you plan to start a family in the foreseeable future, you may want to consider buying a larger home and growing into it. Think through what you will need in regard to furniture and space and make the investment so that you will be set. 

Not Negotiating

So many things can be negotiated during the home buying process, which can lead to huge savings. Think through any major repairs you can get the seller to cover, either by paying for them or by giving you a credit adjustment at closing. If you are in a buyer’s market, the seller could possibly bargain with you to get the house off the market.

Not Budgeting For Closing Costs

On top of saving for a down payment, you will also need to budget for the money that you will need to close your mortgage. Closing costs are usually between 2% and 5% of your loan amount. If you would like, you can shop around and compare closing expenses, such as homeowners insurance and home inspections. You can also ask the seller to pay for a portion of your closing costs or negotiate your real estate agent’s commission. 

Buying Inadequate Homeowners Insurance 

Before you close on your new house, your lender will make you buy homeowners insurance. Make sure you shop around and compare insurance rates to get the best price. Look closely at what is covered in the policies because you will find that going with the cheaper policy usually means fewer protections and more out-of-pocket expenses if you happen to file a claim. It’s also good to know that flood damage isn’t covered by homeowners insurance, so if you home is in an area that is prone to floods, you may need to buy separate flood insurance. 

Not Saving Enough For After Move-In Expenses

You have the down payment done, and the closing costs are behind you, now it’s time to think about what is actually going to go in your home! Make sure you set aside money for furniture, appliances, rugs, updated fixtures, new paint, and renovations if needed.