Five biggest mistakes for first-time homebuyers
First-time Home buyers’ Five Biggest Mistakes Mistake #1: Buying Too Much Home Before house hunting, it’s a good idea to get pre-approved for a mortgage. When you’re pre-approved, you’ll know exactly how much you can afford to spend on a home. Your mortgage broker is going to tell you the maximum amount you can spend, but keep in mind, that doesn’t mean that you should spend the entire amount. Take some time to crunch the numbers and see if you can afford the mortgage payments on a monthly basis. You’ll want to leave yourself some financial breathing room in case mortgage rates go up or you run into a financial emergency. Mistake #2: Forgetting to Budget for Closing Costs If you’ve never bought a home before, it’s easy to overlook closing costs. They’re just a drop in the bucket, right? Wrong. Closing costs can add up to four percent of your home’s purchase price. Mistake #3: Buying Based Solely on Looks Have you ever stepped foot inside a house and it bec...