Buying your first home is exciting but fraught with potential pitfalls. Here are the seven most common mistakes and how to avoid them.
1. Not getting pre-approved. Many first-time buyers start shopping before knowing what they can afford. Get pre-approved for a mortgage before you start looking.
2. Ignoring the total cost. Your monthly payment includes more than just the mortgage — factor in property taxes, insurance, HOA fees, and maintenance.
3. Skipping the inspection. Never waive the home inspection to make your offer more competitive.
4. Being too emotional. It's easy to fall in love with a property and overpay. Set a budget and stick to it.
5. Not researching the neighborhood. Visit at different times of day, check school ratings, commute times, and future development plans.
6. Forgetting about closing costs. Budget 2-5% of the purchase price for closing costs.
7. Making big purchases before closing. Don't buy a new car or open new credit cards between pre-approval and closing — it can affect your loan.
