Being a first time home buyer is both thrilling and terrifying. The idea of purchasing your own home can be exciting. You might quickly envision painting your walls, planting a garden, and making the space your own. However, it can also be an overwhelming experience. Paperwork, mortgages, and house hunting can leave you feeling stressed out and ready to give up.
While purchasing your first home is undoubtedly a rollercoaster of emotions, armed with the right resources, it doesn’t have to be a paralyzing experience. The key is to think critically throughout the process and to work with the right lending team. Here at Patriot Home Mortgage, we love helping new home buyers find the ideal mortgage for their needs. We can assist you with FHA mortgage loans and other potential options, such as VA loans.
If you are just beginning the home buying process, check out these pitfalls you should avoid and contact our team to learn more about the financing options available to you.
Falling In Love Too Quickly
In many cases, when you are considering the purchase of your first home, you might start with a quick perusal of local house ads. Perhaps as you are looking through houses on the market, you find one that catches your eye. You read the ad, drive by the property, and immediately fall in love with the charm of the property. Before you know it, your heart is set on this one house.
While it is understandable that your imagination can be carried away with possibilities when you first see a house you like, make sure you keep your emotions in check. Don’t immediately fall in love with one particular house. This is especially true if you have yet to speak with a lender or a realtor.
A lender will help you determine what price point is going to be feasible for your needs. A realtor is going to be able to help you dissect the details of the homes available on your market. Prior to falling in love with a property, speak to a lender, and find yourself a quality realtor. This will allow you to shop smartly and not fall for a home too quickly that is out of your price range or comes with a slew of issues you can’t afford.
Not Digging Into The Logistics
It is easy to be sold on the idea of a home without understanding every caveat that comes with it. Make sure that before you dive into a home purchase, you spend time digging into the logistics of the property.
You will need to pay for an inspector to visit the property, and your realtor might suggest specific other inspections that need to occur as well. For example, in some areas, testing a home for meth is recommended prior to purchase. For homes outside of city limits, a specific septic inspection might be necessary.
Make sure you spend plenty of time digging into the logistics of the entire property prior to signing on the dotted line. The more you know about your purchase, the better. The last thing you want is to find out that the great buy you just made was actually a money pit.
Stretching Your Budget Too Far
As you look at housing prices and find out what funding is available to you, be careful that you don’t stretch your budget too far. Just because you are approved for a loan, doesn’t mean that it is a wise amount of money to borrow.
Take the time prior to searching for your dream home to put together a realistic budget. Determine how much you can afford to pay each month in total mortgage costs. Don’t forget to factor in extra costs along the way. Unlike renting, when you own a home and something goes wrong, you will need to have the funds on hand to remedy the problem. This is particularly worth considering if you are purchasing an older home.
While you might have to start out with a home that isn’t as large or grandiose as you were hoping for, it is far better to purchase a home that you can continue to afford than to wind up defaulting on your mortgage. Be realistic about the parameters you set for your budget, and stick to what you know is reasonable.
Failing To Look At All Your Lending Options
Mortgages are not all alike. There are countless lending options on the market, and finding the right fit is important. Make sure that you don’t jump into a mortgage without exploring all your options. Ask your lender an array of questions to determine what mortgage is going to be the best long-term fit for your needs.
For example, if you are a first time home buyer and you don’t have a lot of money to put down on a house, an FHA mortgage might be the right fit for your needs. However, if you have a lot of money to put down, a conventional loan might offer better rates. If you are a veteran, exploring your VA loan options is a must.
Be sure that you take adequate time to understand what your options are prior to making a purchase. The home buying process is best handled methodically and slowly. While it is tempting to dive in and pick out a home rapidly, the longer you spend getting your ducks in a row, the better chance you have at saving money over the long run.
Reach Out To Patriot Home Mortgage
If you are starting the home buying process and you aren’t quite sure where to begin, we invite you to reach out to our team at Patriot Home Mortgage. We will be happy to assist you in exploring the financing options available to you. We can help you look into everything from FHA mortgage loans to VA loans to conventional options. Our goal is to help make your first home purchase a positive experience. Contact us today to learn more.