11 Things First-Time Buyers Always Get Wrong About Buying A House
In the same way that pulling the trigger on a property with too much haste can backfire, so too can cautiously wait for the perfect home to cross your view. Any homebuyer will come up with a list of must-haves and deal breakers. However, sticking too religiously to these facets of the ideal home often leads buyers to overlook excellent properties that might not be perfect but still hit many of their needs. The truth is that there’s rarely a perfect home out there for any given buyer. This is especially true for first-timers. As a green home seeker, you aren’t likely to have a fully formed understanding of all the nuances of homeownership. That’s perfectly normal, but it can lead to viewing homes with blinders on — both in ways that showcase little faults in an otherwise excellent home or hide glaring issues in a property that includes several attractive amenities.
The reality of homebuying means that most shoppers will need to outline the type of home they want and then be ready to compromise to find a suitable space to live. As a homeowner, it’s always possible to make cosmetic or even structural changes later on. Finding a home that serves your needs, even if it isn’t the perfect space that matches your dream home precisely, takes compromise as well as discretion and caution.
Starting the search before applying for mortgage preapproval

The homebuying process doesn’t truly kick into full gear until you’ve got the capital required to purchase a home lined up. This means saving up for the down payment as well as applying for a mortgage preapproval to gauge exactly where you stand in terms of buying power and repayment obligations. Mortgage preapproval gives you the confidence to make a realistic offer on a home that you love, and it shows the seller’s real estate agent that you’re a serious buyer and not just a wishful thinker. Anyone can express interest in a home, but if you haven’t been preapproved for a mortgage when speaking with a realtor, then you may be overlooked when the seller starts to consider offers on the table from interested buyers. Preapproval indicates that a buyer has been vetted and will definitively receive funding to buy a home up to a specific limit.
In the current marketplace, you may be looking at higher-than-average competition for just about any home that meets your needs. The difference between closing on a home and being repeatedly snubbed by sellers can lie in this simple step taken before making an offer. You’ll need to apply for mortgage funding before closing on a purchase anyway, so preapproval is a planning step that provides clarity to a seller as well as realistic budget expectations for your purposes.
Failing to manage credit accounts throughout the buying process

Every buyer knows the importance of paying down existing lines of credit before taking out a mortgage loan. Experts suggest keeping revolving credit utilization below the 30% threshold (a goal that’s also essential for maintaining a good credit score). But there’s more to credit management than just paying off balances and keeping new spending to a minimum.
It’s crucial to keep your credit situation in equilibrium during the home search and purchase period. Taking out a new loan or opening a new credit card account can throw your credit score out of whack and add a new curveball to your credit report. These are red flags that mortgage lenders will want to evaluate closer, delaying or potentially even derailing the process of purchasing your new home. It’s good practice to start eating away at debts in six months or more before purchasing a home. Still, you’ll also want to essentially freeze any activity that doesn’t involve paying off debt from the moment you apply for preapproval through to the sale’s close.
Overlooking alternative lending and assistance programs
Lending programs exist to help higher-risk buyers secure funding, as well as individuals who meet specific qualification requirements. VA loans, for instance, offer backing from the Department of Veterans Affairs and allow active-duty servicemembers and qualified veterans the ability to purchase a home at a great rate. VA backing means a lender can feel more secure in their approval of the loan, which often results in a lower interest rate.
FHA loans (from the Federal Housing Administration) are built to provide the same kind of fiscal backing to those who have lower credit scores and may not be eligible for typical lending opportunities. First-time buyers may also be eligible for tax credits, grants, and other programs that put valuable capital back into their pockets after closing or offset the cost of the home upfront. To take advantage of these kinds of incentives, you’ll need to explore your local government’s online resources. However, there are often many kinds of benefits that are available to first-time buyers, so looking for ways to cash in on your status as a first-timer should be a high priority.