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Five Mistakes to Avoid For First-Time Home Buyers Part 2

Earlier we discussed the first five mistakes to avoid when buying a house in Waltham, MA. Below are five more additional mistakes to avoid if you are a first-time home buyer on the hunt.

  1. Not Getting Pre-Approved For A Loan – If you want to be taken seriously when you are looking for a home to buy it is good to have a pre-approved letter from a lender. This ensures the seller that a lender has looked over your financial situation and is comfortable with giving you the rest of the money you need to pay off the house.
  2. Paying Private Mortgage Insurance (PMI) – When buying a house, you will have to put down at least 20%, if not, then you will have to pay PMI. It is always better to not go this route which is why realtors advise to save enough money for the down payment. A lot of first-time buyers do pay this insurance so if you do, let your lender know when you pay down your mortgage and owe just 80% of the home’s value. The lender will then automatically cancel your PMI when you owe 78%, that way you aren’t paying a month more than you should.
  3. Not Checking the Homeowner’s Insurance Price – If you are looking for a beach home then you want to make sure you can afford the insurance of that home. Beach homes and homes located near a fault line, have a pool and other factors may have higher insurance rates. Before settling on your dream home, make sure that it fits your financial budget.
  4. Not Checking Your Credit Score – To buy a home, you need to have a good credit score. One of the worst feelings is finding your dream home but not being able to buy a house in Waltham, MA because of your credit score. Sometimes, credit reports contain errors that can show that you have late payments when you don’t which could hurt your score and chances of landing your home. Make sure to check your credit at least three months prior to starting the house hunting process. That way you can find any errors, contact the credit bureau, and get the errors fixed.
  5. Not Getting a Home Inspection – When looking for a home to buy, you want to make sure to get the home inspected. Regardless, if the home is new or not, an inspection is something you want to do. Some home buyers skip this step as they are so emotionally attached that they want it regardless. If your home of interest has issues, you’ll want the seller to fix those issues before the sale or ask for a lower price. A lot of first-time home buyers may be afraid to ask about fixing issues but the reality is the buyers who ask for more often get more.

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