Ok, so you are just starting out and looking forward to your first home purchase.
It is likely that you are thinking “What should I do?” “How should I get started?”. Those are good questions,but there are a couple of things that you SHOULD ask about what NOT to do as well. Here are five things that first time homebuyers should avoid in the purchase of their first home.
1. Buying too soon. – YES. You can buy a home too soon. For example you need to make sure that your employment and income is stable enough and that you have reserves to cover any situations that arise. If you wait until you have these in place, buying a home can be a great investment and stability. Buying too soon and then having to change careers and be potentially force to sell quickly can be difficult.
2. Buying too much home – We help first time homebuyers buy the RIGHT amount of home that they can afford. (Hint: It is often just less than what loan guidelines are.) Taking on too much too soon can cause stress. We are happy to help you KNOW what you can afford and help you get the RIGHT house for you.
3. Fixer Uppers – With your first home, you CAN get a ‘fixer-upper’. Some people try to do this with the idea that they will fix it up over time and that they will make ‘sweat equity’ on the deal. Honestly, on your first home, unless you are a construction professional, it is best to focus on a home that is already in market condition…not perfect, but market condition. You want to remove this variable from the equation at first. After you have experience with this home…THEN branch out to fixing homes up.
4. Credit Changes – once you start working with a mortgage person, you really do NOT want to make additional changes to your credit profile until AFTER you own your home. This is important. Job changes, large purchases (cars are especially important), additional credit purchases, or ANY major financial change is something you should avoid. These changes will DEFINITELY affect your closing and may cost you the home of your dreams.