No matter how much
time you spend on researching and educating yourself about your home purchase,
it’s hard to cover every detail. Here are a few tips for avoiding rookie
mistakes with your first home purchase.
1. Save as early as
you can: Even if you think you’re years away from buying your first home, try
to start saving for your down payment. It makes a huge difference in your
monthly payments, and helps avoid paying Private Mortgage Insurance.
2. Be thorough with
mortgage shopping: There are countless resources out there that can help you
get the best terms for your mortgage. It may seem like a lot of work to shave
less than a point off your mortgage rate, but it’ll save you thousands in the
long run.
3. Consult a skeptic:
You’re likely to fall in love with a home, and that can make it difficult to
take problems seriously. Bring along a skeptical friend or family member who
can give you an honest opinion.
4. Be patient with
getting settled: You’ll be anxious to make your new home your own, but take
some time to see how your budget truly shakes out. In other words, hold off on
big furniture purchases and remodeling projects.
5. Make sure you’re
happy with the neighborhood: The house may be perfect, but don’t discount the
surroundings. You don’t want to end up in the suburbs if you’re going to miss
walking to your favorite coffee shop, and you don’t want to settle for the city
if you’re looking forward to some peace and quiet.
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