As a first home buyer, buying a home is an exciting whirlwind full of new things and items to consider at each new turn. From renting to home ownership, many families are making their dreams come alive by investing in their future and building a foundation for years to come. Buying one’s first home is nothing short of a lifetime achievement. Though the purchasing of an FHA Orange County, Los Angeles, or Ventura approved home marks a successful time, there are often mistakes many 1st home buyers make that can hurt them later down the road. As a FHA 1st time home buyer, learn how to avoid the top ten most common mistakes many first home buyers make:
1. FAILURE TO BUDGET PROPERLY = Don’t make the mistake about estimating your budget. Be sure to take time to review, create, and check your budget as each month passes prior to your closing. This process will help provide you the confirmation and assurance you may need as a first home buyer preparing to hold a FHA loan. Ideally, check back in the last 12 months and account for all of your expenses as well as map out the road ahead in saving for your down payment. This, though tedious and not the fun part of buying a home, will help you paint the realty of your financial abilities and or the lack there of. Better to know ahead of time and be prepared than to live in wishful thinking. That only gets you into trouble.
2. DON’T TAKE A REAL AGENT’S ADVICE ON YOUR BUDGET = Real estate agents tend to lead FHA 1st time home buyers using a rough estimate on a home loan amount you can afford versus professional review and confirmation. They often do this estimation through calculating the base of your household income. Though this approach is tempting, do not accept their buying budget for yours. Make sure you talk with a loan officer or broker regarding your monthly budget and possible monthly payments for an FHA loan. This, and only this, will provide you the comfort needed in making your monthly payments on time and with ease.
3. NO NEED TO IMPRESS = As a first home buyer, don’t feed into the pressure of buying a home similar or above that of others; especially when the purchase price is above your price range. No matter how beautiful the more expensive home is, once you find yourself paying out the monthly mortgage payments, the stress of having higher payments will far outweigh the happiness of a affordable home.
4. DIDN’T DO YOUR MARKET HOMEWORK = Homes have unique characteristics. Their size, location, and condition all play a vital role in calculating their worth and longevity which is why it is important as first home buyers to really do your homework on all the items related to the homes your are considering. Make sure you review the near by shopping centers, freeways, possible future construction developments, schools, and surround neighborhoods. By knowing as much as possible about each home and all that comes along with it, you will be able to make a better informed decision on the home you select to purchase and its’ value.
5. DON’T EXPECT UNPROMISED FUNDS = Many 1st home buyers purchase their first home in the earlier stages of their careers which leads to the notion that the home mortgage payments will get easier as their career progresses. This is not promised and therefore, should not be considered in your decision to purchase a home with payments that are not comfortable for you in where you are today. With the possibility of employment and job salaries not increasing, it is best advised to budget off of what you currently have and not in what you hope to have.
Join us in our next post for the remaining 6 – 10 common mistakes made by 1st time home buyers…
6. LACK OF SAVINGS
7. DIDN’T SHOP AROUND FOR THE RIGHT LENDER
8. NOT CONSIDERING MORTGAGE FEES
9. NOT CONSIDERING AN FHA LOAN PROGRAM
10. AVOIDING MORTGAGE PAYMENT RED FLAGS