The 10 Biggest First-Time Home Buyer Mistakes (and How to Avoid Them)
common home buying mistakes
When purchasing a property, you don’t want to make the wrong move or completely overlook something important. The best thing you can do is educate yourself and be aware of common mistakes buyers make – so you can avoid them and the stress they cause.
1. Miscalculating the Full Costs of Buying
Buying a house is a big deal, literally. It’s likely the biggest financial endeavor of your life thus far. Even with all of the low down payment programs available to first-time buyers, it’s no small feat. Down payment aside, other expenses can really add up. Along the way, there will be a few sunk costs, like paying your home inspector and the appraisal fee. The biggest “hidden cost” that comes as a surprise to first-time home buyers is the closing costs, which cover a wide variety of transactional fees and pre-payments.
Down payment aside, other expenses can really add up. Along the way, there will be a few sunk costs, like paying your home inspector and the appraisal fee.
Closing costs can amount to 2 to 5 percent of the home’s purchase price. The best way to determine a comprehensive list of fees is to speak with all of the key players involved in the transaction (your real estate agent, the lender, the insurance provider, the title company, your attorney, etc.) to get an estimate.
