For over ninety percent of homeowners, the purchase of their home is the largest investment they will make in their entire lives. Because of the enormity of the finances involved, his is often an exciting, nervous and anxious time.
In an effort to help reduce any unwarranted stress, we’ll explain some of the common mistakes first-time homebuyers make and how to avoid them.
Not Getting Pre-Approved
A lot of first-time homebuyers, excited by thoughts of their dream home, fail to get pre-approved for a home loan before beginning their search. It is often not the case that a first-time homebuyer has a large sum of cash on hand and perfect credit. Because of that it’s important to get pre-approved for a loan. Pre-approval will let you know from the beginning how much home you can afford, saving you headaches down the road.
Not Knowing How Much Home You Can Actually Afford
Getting pre-approved for a certain amount and knowing what you can actually afford are two different things. To know how much home you can actually afford you must calculate your income, any and all debts, and account basic living expenses such as the mortgage, cell phone bill, internet, car payment, groceries, etc. Additionally, you’ll need to be made aware of the costs that come with buying a home, which include escrow costs, closing costs, appraisal fees, inspection costs and more. While only one-time fees, they can certainly eat into a budget.
Being aware of these pitfalls will help make your home buying experience much more pleasant. Contact a member of the Gore Group Realty team to learn more about the Henderson real estate market.