November 15

Watch and Win!


Purchasing your first home is an exhilarating experience, but it can also be filled with potential pitfalls. Many first-time home buyers have a lifelong dream of owning a house, but it’s important to navigate the process carefully to avoid any setbacks. In this article, we will discuss 15 common mistakes made by new home buyers and provide tips on how to avoid them.

1. Starting the approval process early is crucial when buying a home. Skipping preapproval can lead to mistakes, but taking the time to apply upfront offers benefits such as a clear understanding of affordability and preventing overspending. Preapproval portrays buyers as serious and committed, and it’s important to note that prequalification lacks financial backing. Preapproval strengthens a buyer’s position when making an offer, and Rocket MortgageĀ® offers Verified Approval, a higher level of initial approval.

2. Considering Just a Single Mortgage Rate Quote
Obtaining a mortgage quote from a lender might appear to be a lengthy process, involving discussions with an expert and submitting financial documents. However, solely relying on the initial quote received may save time but not necessarily money.

It is possible that another lender could present an offer that would result in long-term savings on the loan. Therefore, obtaining multiple quotes is the most effective approach for buyers to select the ideal lender and secure a mortgage with the most favorable rates and terms.

3. Although it’s possible to forego the assistance of a real estate agent, it’s important to weigh the advantages of having an expert by your side. Real estate agents can provide valuable insights and support, making the home buying experience more manageable.

4. Purchasing a Home Beyond Your Financial Mean
While the initial mortgage approval provides an estimate of the house you can afford, it’s important to note that this amount may not align with your budget entirely. This is because there is often a disparity between your debt-to-income ratio (DTI) and your overall monthly expenses.

When a lender assesses your financial information for approval, they primarily rely on your DTI to gauge the portion of your monthly income allocated towards debt payments. However, DTI fails to encompass all your expenses, such as groceries, utilities, and health insurance, which can accumulate rapidly. Consequently, buying a home that matches your entire approved mortgage amount might make it challenging for you to manage other monthly obligations.

It is crucial to take into account any monthly expenses that were not considered during the initial approval process. Alongside your current budget, factor in additional costs associated with homeownership, including closing costs, maintenance expenses, and the potential rise in utility bills.

consulting a professional is important when Purchasing a home for the first time. We recommend checking for professionals to help you when looking for your next home! We have professionals all throughout the US ready to help!


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