Many people think they are ready to become homeowners once they get financially sound. First-time home buyers, be it in Texas or another state, need to consider multiple factors before they sign the dotted line. The factors include mortgage expenses for property maintenance and insurance costs in the future, which they often forget to evaluate. To help, we have highlighted five mistakes you need to avoid when purchasing your first home. Let’s begin.
1. Factoring only the mortgage expense
One of the biggest mistakes many first-time home buyers do is not taking into account the expenses other than the mortgage payment. These expenses include the property insurance, maintenance costs, water and electricity bills, homeowners association dues, and taxes. In fact, since property taxes and insurance tend to go up every year, you should calculate both mortgage amount and the additional expenses you need to bear after purchasing a property.
2. Searching a house first, and getting pre-qualified later
Another mistake that homebuyers make is looking for a property without assessing their current eligibility. The first step should ideally be getting pre-qualified first, which gives a clear picture about how much mortgage loan you are likely to get based on your current and past financial status. When you know how much amount you have been approved for, selecting your dream house becomes easy. Otherwise, you would be wasting your, seller’s, and the agent’s time.
3. Not getting a home inspection done
Getting a home inspection done buying a property is a due diligence step when purchasing a property. Unfortunately, that’s where many first-time home buyers miss out and end up paying more than what is required. A home inspector can help you save thousands of dollars on repair expenses on the property you intend to buy. That’s one big reason sellers and buyers use an escrow account these days. Once the pre-inspection process is complete, the party managing the escrow account can transfer the funds to the seller and the title to the purchaser.
4. Choosing a property in a haste
Unless the property you are planning to purchase fits perfectly based on your requirements such as price, size, and the location, it is not ideal to make a decision in a hurry. The housing market is thriving in the states like Texas, and you will get a plethora of options. If you find a suitable property that may be a little pricey considering your budget, you can still afford it. There are programs for first-time homebuyers in Texas that provide financial assistance to prospective homebuyers with minimal down payment and low-interest rates.
5. Not seeking professional assistance
Buying your first home is almost like venturing into an unknown territory. There are many requirements and rules, and you aren’t familiar with every one of them. Seek an experienced mortgage expert, who can help get your dream house at competitive interest rates in your preferred location. Mortgage experts have thorough knowledge about specialty mortgage loans and they also help with the application process.
So these were some of the common mistakes that first-time homebuyers tend to commit, whether in Texas or some other part of the US, and should be avoided at all costs. Home buying is one of the biggest investments, and therefore, you got to take all the due diligence steps to ensure that you get the best out of your investment.