HUD Articles

5 Common mistakes buyers make when buying their First Home

Buyer a home for the first time can be overwhelming.  With so many steps involved, it’s easy for first-time home buyers to make some mistakes. 

Not working with a qualified Real Estate Professional:

Real Estate agents are experts in handling the home buying process. They provide expert knowledge of your area, handle the heavy lifting, help with the mortgage process, guide negotiations and assist with paperwork and closing.

Not starting the mortgage approval process early:

Taking time to apply for approval upfront is beneficial it is the simplest and most accurate way to determine how much house you can afford.

Not checking your credit score:

Although your credit is pulled during the lender’s initial approval, lenders will recheck it just before the scheduled closing day, and changes in the credit report could mean changes to your loan. For example, suppose you apply for new credit cards or fail to make payments on existing credit cards before closing. In that case, your credit score could drop significantly, making it difficult to qualify for financing.

Buying More Home Than you can Afford:

When a lender reviews your financial information for approval, they rely on your debt to income ratio to determine how much of your monthly income is going toward debt bills. But DTI doesn’t account for all your expenses, and costs like groceries, utilities and health insurance can quickly add up. Therefore, buying a home worth your entire approved mortgage amount may make it difficult for you to afford other monthly payments.

Waving A Home Inspection:

Home inspections protect home buyers and lenders in cases of serious issues with the home’s structure or core systems. After the home inspection, you’ll receive a report with any identified or potential issues in the home, and you can use this to negotiate repairs or a lower purchase price with the seller