Five Mistakes First Time Homebuyers Should Avoid
Buying a house in Raleigh requires a lot of time and effort. It has the potential to be a very tedious process with a lot of hidden information. Getting a mortgage, finding the right real estate agent, searching for the perfect home, and staying within a budget, are some of the challenges that first time buyers must face before becoming homeowners. Are you dreaming of moving to Raleigh and buying your first home? Raleigh moving companies like All My Sons Moving & Storage, want to help you avoid the five mistakes that first time home buyers commonly make.
- There is more to it than your mortgage payments. Many first time homebuyers decide to purchase when they feel that they are ready for a mortgage and are done with renting. Raleigh movers want you to know that just because you can afford a mortgage does not mean that you can afford to own a home. Property insurance, taxes, homeowners association fees, maintenance, and higher utility bills are some costs that first time home buyers often overlook. Even though it is your first Raleigh home, it is a long term commitment and taxes and insurance tend to go up every year, picture yourself living in your Raleigh home for at least 5-7 years.
- Buying a home in Raleigh doesn’t begin with looking for a house. Home buying begins with mortgage prequalification, unless you have enough to pay for a Raleigh house with cash. Know where you stand before you go shopping and go through the preapproved process before you begin to look for a home in Raleigh.
- Venturing into the home buying process alone without professional help is not a good idea. You will need a reputable real estate agent, loan officer, and even a lawyer. Those who are buying a home for the first time should not deal directly with the listing agent. Find a buyer’s agent to help you, because they can show you all of the available listings that suit your budget.
- Spending all of your savings on the down payment and closing costs is one of the biggest mistakes that first time homeowners make. Choosing to spend all of your savings to put 20% down in order to avoid mortgage insurance is not a wise decision. Raleigh movers urge new homeowners that dropping 20% on a down payment is not worth the risk of living on the edge, and it is more important to have a “rainy day fund” in case of emergencies.
- If you are prequalified for a loan and have found your dream home in Raleigh, you’ve signed a contract and the closing is in 30 days, do not finance other big purchases! Lenders pull credit reports before the closing to make sure that the borrower’s financial situation has not changed since the loan was approved. Any new loans can jeopardize the closing because it can affect the homebuyer’s credit score. Unfortunately, some first time homebuyers have to learn this the hard way, then end up not being able to move to Raleigh as planned.