5 First-Time Homebuyer Mistakes That Could Cost You Thousands
Buying your first home is exciting, but one wrong move can cost you thousands. Many first-time buyers make costly mistakes simply because they don’t know what to expect. Before you start house hunting, avoid these five common pitfalls—and join our free first-time homebuyer class at Hops ‘N Homes to get expert guidance in a relaxed, no-pressure setting.
1. Skipping Mortgage Pre-Approval
Looking at homes before getting pre-approved for a mortgage is like shopping without knowing your budget. Without pre-approval, sellers may not take your offer seriously, and you could waste time falling in love with homes outside your price range.
Pro Tip: Get pre-approved early so you know exactly what you can afford and can make competitive offers. One of our Hops ‘N Homes partners, Carli Zismer, a loan officer at LoanDepot, will be at our events to guide you through this entire process. She can help you get pre-approved and find the best loan options to fit your budget. Learn more about Carli here.
2. Underestimating Closing Costs
Many first-time buyers focus on their down payment but forget about closing costs, which can add 2-5% of the home’s purchase price. These costs cover things like lender fees, home inspections, and title insurance.
Pro Tip: Ask your lender for a breakdown of closing costs and explore first-time buyer assistance programs that can help with expenses.
3. Overlooking First-Time Homebuyer Programs
Did you know you might qualify for low down payment options, grants, or tax credits? Many buyers assume they need 20% down, but some programs allow you to buy a home with as little as 3% down.
Pro Tip: At our Hops ‘N Homes first-time buyer class, we’ll walk you through your options and connect you with lenders who specialize in these programs.
4. Making Big Purchases Before Closing
Buying a car, opening a new credit card, or even financing furniture before closing on your home can hurt your credit score and loan approval. Lenders check your financial status up until closing, and a sudden credit change could delay or cancel your loan.
Pro Tip: Wait until after you close on your home to make any big financial moves.
5. Not Understanding Your Mortgage Options
There’s more than one type of mortgage, and choosing the wrong one could cost you thousands in extra interest. Whether it’s a fixed-rate, adjustable-rate, VA, or FHA loan, understanding your options can save you money.
Pro Tip: Join our free homebuyer class to get expert insights into which mortgage is right for you.
Avoid These Mistakes—Sign Up for Our Free First Time Homebuyer Class! Don’t navigate the home buying process alone. Join us at Hops ‘N Homes each month at a local Boise Brewery for a free first-time homebuyer class. Enjoy a relaxed atmosphere, connect with real estate experts, and get the knowledge you need to make smart financial decisions.