DAYTON, Ohio (WDTN) – The year is coming to a close and if buying your first home is one of your New Year’s resolutions, there are some things you should know.
There are several key first steps towards homeownership but also some costly pitfalls.
Real estate investor David Greene shares the five most common first-time homebuyer mistakes and how you can avoid them.
“Buying a house is an emotional decision,” Greene said.
Mistake number one: looking for a home first, and a loan later. While it might be fun to pick out a nice house first, experts say get pre-qualified first.
“You don’t want to get emotionally attached to a house before you have the numbers worked out,” Greene said.
Mistake number two: overlooking other payments. It’s not just the mortgage. Can you afford property insurance, taxes, maintenance, and higher utility bills?
“Then you have to consider the fact that when something breaks when you’re a homeowner, you pay for it, not your landlord,” Greene.
Number three: using up all your savings. Draining your bank account for the down payment and closing costs is the wrong idea.
“My advice would be to put as little down as you have to to get the best loan that you can,” Greene said.
Mistake number four: buying a new construction home. Experts say these are often in areas that have higher property taxes.
Mistake number five: trying to buy your forever home with your first house.
“Buy the house that makes the best sense for you right now and keep an open mind that that may not always be the case,” Greene said.