Buying your first home is an absolutely wonderful experience. The fun and excitement of looking at homes, finding the right one and picturing yourself living in your new castle. But reality is that first time home buyers are the most likely to make serious mistakes when shopping for their first home. Whether it is financial mistakes, house mistakes or location.
This is why hiring a competent realtor and working with a great mortgage broker is so important. They will help you avoid making many common mistakes and direct you towards making the absolute best decisions possible.
3 Mistakes First Time Home Buyers In Littleton Commonly Make
Choosing The Wrong Mortgage
First time home buyers typically default to a 30 year fixed rate mortgage because they believe it to be a conservative loan and perfect for all situations. The truth is that interest only mortgages, ARMs, 15 and even 10 year mortgages have their place with different buyers. If you know that your work is going to move you again within 5 years, an ARM might be the perfect choice. If you are buying a home later in life and want you payments gone as soon as possible (and can afford it), a 15 year mortgage may be perfect. Make sure to discuss all of your options with your lender.
Spending The Most Possible On A Mortgage
Just because you are approved for $300,000 doesn’t mean that you should spend $300,000 on a house. You need to look at your personal budget and what your future most likely holds for you. If you have other areas of life that may take a significant portion of your income, spending your maximum allowed on a home may not be a good idea. It is also a good idea to leave room in case of income loss later on.
Getting Pre-Qualified Too Late
Many people wait until they are ready to start looking at homes before they go and get pre-qualified for a mortgage. This is not a good idea at all. Getting pre-qualified is free and is meant to help you prepare to purchase your home. You may find your credit score is too low, has errors or you need to improve your income. These things could literally take up to a year to resolve and could really dampen your home buying aspirations.