1 Not getting pre-approved for a mortgage: Before you start looking for a house, it's important to get pre-approved for a mortgage so you know how much you can afford to spend. Not getting pre-approved can lead to disappointment when you fall in love with a house that you can't afford.
2 Failing to budget for closing costs: Closing costs, such as title insurance and legal fees, can add up quickly and can be a surprise to first-time homebuyers. Make sure to budget for these costs when you're considering how much house you can afford.
3 Skipping the home inspection: A home inspection can reveal major problems with the house that you may not have noticed during the walk-through, such as a leaky roof or a faulty foundation. Skipping the home inspection can lead to costly repairs down the road.
4 Not considering the long-term costs of homeownership: Owning a house comes with many additional costs, such as property taxes, insurance, and maintenance expenses. Make sure you're prepared for these long-term costs before you buy.
5 Not shopping around for the best mortgage rate: Not all mortgage rates are created equal, so it's important to shop around and compare rates from different lenders. This can save you thousands of dollars over the life of your loan.
6 Not being prepared for the emotional roller coaster of the homebuying process: Buying a house can be an emotional experience, filled with highs and lows. It's important to be prepared for the roller coaster ride and to have a support system in place.
7 Not having a contingency plan: Things don't always go as planned during the homebuying process. It's important to have a contingency plan in case the deal falls through or you can't find a house that meets your needs.
8 Not working with an experienced realtor who has a wealth of knowledge and is professional about their job. Get recommendations from friends, do your research, and interview prospective candidates.
9 First-time home buyers are often targeted by scammers due to their inexperience and vulnerability during the complex process of buying a home. These scams often involve aggressive sales tactics, unrealistic promises, and requests for wire transfers, particularly if the request is urgent.
10 Purchasing with a friend. Sometimes it works, but the risks and downsides include potential ruin to your friendship and financial life, if either you or your friend(s) don't see eye-to-eye down the road. Treat it like a business contract.