5 First-Time Homebuyer Mistakes (And How to Avoid Them)

If you're a first-time homebuyer, then don't miss out on these common home buying mistakes. Click here to learn more about how you can avoid them.

Do you dream about owning your first home?

Your first home marks a major milestone in your life. The last thing you want is to regret it. Before you sign on the dotted line, make sure you've got all of the right boxes checked.

Keep in mind these common first-time homebuyer mistakes. Learn how to avoid them to make sure your first home purchase is the one of your dreams!

1. Skipping the Pre-Approval for a Mortgage

When getting ready to take out a mortgage, you'll have to submit financial information to your lender for pre-approval.

During the pre-approval process, your lender will take a close look at your finances and employment status. He'll also check your credit to make sure you have enough to take out a mortgage.

You must get pre-approved for your mortgage. It enables the lender to determine what you qualify for, and it will give you an idea of how much you have to pay.

If you skip this process, you forgo valuable knowledge that can help you plan your budget and anticipate monthly payments.

2. Compromising Personal Credit Before the Loan is Finalized

Once the loan is almost final, you might not think to worry about your credit. You'd be wrong.

Take care of all your credit issues before your mortgage is finalized. A drop in your credit score can lead your lender to reject your loan or drastically change the terms.

Check your credit before you begin the home buying process and adjust accordingly. Start a conversation with potential lenders about the credit score they look for in a traditional mortgage.

Maintain good credit habits like paying bills on time, carrying little to no balance on your credit cards, and taking care of any other lingering issues.

Your credit is the baseline for your entire mortgage approval. Make sure it's on par before you start searching.

3. Working With the First Real Estate Agent You Find

It's easy to let emotions dominate you during the buying process. You're taking a big step. Unfortunately, emotions often get in the way.

Many first-time homebuyers will go with the first real estate agent they find, without pausing to make sure they're the right fit.

When it comes to real estate agents, first-time homebuyers should find a knowledgeable agent with an extensive background in the field. This agent should be honest, realistic, and prepared to work with your needs and interests.

The best way to find this real estate agent is to do your homework. Ask the potential agent about his/her qualifications and certifications. Don't be afraid to meet with several agents to decide on a good fit.

Choose an agent who knows the current market and its trends and can show you areas of opportunity you may have otherwise missed.

4. Making Assumptions About Mortgages and Their Terms

The world of mortgages is as intimidating as it is unclear. Often, a first-time homebuyer will make assumptions about home loans and get discouraged. But most of what they assume isn't true. Let's clear up a few of those mortgage myths, shall we?

Most people assume they don't qualify for a mortgage, period. This is a hasty assumption to make. Many people can take out mortgages with good to fair credit.  Pre-approval will show you what mortgage you qualify for.

Many homebuyers also assume that they'll have to come up with a hefty down payment. This may not actually be the case. Every loan situation is different, which is why you need to get pre-approved to understand the terms.

Ask as many questions as possible when buying a home for the first time. Make sure you are clear on everything.

5. Choosing a Lender Who Sounds Good

This goes right up there with choosing a real estate agent right off the bat.

Your lender will play a crucial role in your first home buying experience, which is why you want to choose one that won't steer you wrong. 

But what does an excellent fit look like?

You'll want a lender well-versed in mortgages and their terms and can work with your income and home aspirations. Search for lenders who have genuine relationships with their clients and a good understanding of market and interest trends.

Above all, first-time homebuyers should choose a mortgage lender who works with honesty and integrity. Do your research to find the lender who will work with your financial situation and home buying goals.

Avoid These Common Homebuyer Mistakes

It's easy to fall into traps when buying a home for the first time. However, you can avoid these first-time homebuyer blunders.

The most common pitfall is to not get pre-approved for a loan, which will jeopardize the entire home buying process the start. Get pre-approved first and the keys of your new home will be that much closer.

Second, Don't blindly pick real estate agents or lenders without researching them first and be clear on their terms.

Lastly, do your homework on mortgages and their terms. Maintain your credit throughout the mortgage process. Avoid these mistakes and you take your first step toward your dream home.

I know it sounds like a lot, but don't worry. You don't have to go it alone. 

As the Kansas City Mortgage Guy, I believe in giving every homebuyer the best possible lending experience. I pride myself on nurturing long-term relationships with my clients and get genuine satisfaction in assisting first-time buyers.

I can't wait to help you transition into a new and exciting life. Contact me today to get started