Many couples struggle when they decide to buy their first home. They might argue over their wants, needs, and their budget. Many couples make a lot of mistakes along the way with their new mortgage. These mistakes can happen during the mortgage process while others will happen after they buy the home.
Here are some common mistakes that first-time home buyers make.
Not being pre-approved for a loan. If you are pre-approved for a loan, you already have a lot of the paperwork done for a mortgage. You know that you are likely to be able to get a loan when you find a home that you like. You also know what your price range will be when you start looking at homes.
Forgetting about other costs. There are more costs to consider than just the mortgage and settlement. You are going to need to get an inspection, an appraisal, along with other costs. As a home owner, you are going to have to pay property taxes and home owner’s insurance. You will also need a large amount of money as a down payment for your loan.
Not having an emergency fund. It is important to have an emergency fund. As a home owner, you are going to be responsible for any repairs when things break. If the roof needs to be replaced or an appliance breaks, you are going to be responsible. For this reason, you should always try to place money aside for an emergency fund so you are not always getting your credit cards out.
First-time home buyers make plenty of mistakes. Many forget to get pre-approved for a loan so they don’t know what price range they should start looking at. They also don’t often think about other costs included in a home, like the inspections, appraisal, property taxes, and home owner’s insurance. Many don’t have an emergency fund. Instead, they rely on their credit cards!