If you are someone who is planning on buying your first home, this blog is for you. In this blog, we are going to list some common mistakes that we have witnessed first home buyers make with the intention of helping you avoid them.

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• buying your first home (100-1k)
• first time homebuyer (100-1k)
• first home buyer mistakes (10-100)

Mistake #1: Borrowing more than you need

Just because a lender says you qualify for a larger loan doesn’t mean you should max out your borrowing potential. Remember, they don’t know the ins and outs of your daily expenses or how your financial situation might change. Play it safe by borrowing an amount that keeps your monthly payments comfortable and manageable, giving you peace of mind.

Mistake #2: Forgetting to check your credit report.

Your credit score is a big deal when it comes to securing a mortgage with a great rate. Before you apply, make sure to take a close look at your credit report. Fixing any errors and boosting your score can save you thousands in interest over the life of your loan. A little effort here goes a long way!

Mistake #3: Not shopping around for the right lender.

Every lender is different, and not all offer the same level of service or terms. You want a loan officer who’s responsive, answers all your questions, and guides you smoothly through the process. Don’t settle—talk to a few lenders and find one you feel comfortable with. It’s your money, after all!

Mistake #4: Failing to compare mortgage products.

When picking a lender, make sure you’re also looking closely at their mortgage products, including interest rates and fees. Understanding the difference between interest rates and annual percentage rates (APRs) can make a big impact on your overall costs. Don’t leave money on the table—shop around for the best deal!

Mistake #5: Making big financial moves during underwriting.

Once your mortgage application is in, lenders will keep a close eye on your financial situation right up until closing day. To avoid any red flags, hold off on major changes like switching jobs, opening new credit cards, or moving large amounts of money between accounts. Save those big moves for after the deal is done!

Mistake #6: Skipping the home inspection.

You might be tempted to skip the home inspection to save a few hundred bucks, but this could cost you big time later. A home inspection can reveal hidden problems that could become expensive repairs down the road. Spending a little now could save you thousands in the future. It’s always better to be safe than sorry!

Mistake #7: Buying a fixer-upper without the know-how.

A fixer-upper might seem like a dream project, but it can quickly turn into a nightmare if you’re not prepared. If you don’t have the skills or experience to handle the renovations, those “money-saving” repairs can end up costing a fortune. Get professional estimates and consider whether you’re ready for the commitment before diving in.

Mistake #8: Overlooking homebuyer assistance programs.

Buying your first home can be tough, but you don’t have to go it alone! There are many homebuyer assistance programs out there that can help with down payments, closing costs, and more. Do some research—you might qualify for some great financial help that can make your home-buying journey a lot easier.

Mistake #9: Using the seller’s agent.

When you see the perfect home, it might seem convenient to call the agent listed on the sign. But remember, that agent represents the seller, not you! To make sure your interests are protected, you need your own agent—someone who’s looking out for you, not the seller.

Mistake #10: Not hiring a qualified buyer’s agent.

The best way to ensure you’re making a smart investment is to work with a real estate professional who’s got your back. Look for someone with the Accredited Buyer’s Representative (ABR®) designation to guide you through the process. A qualified agent can help you avoid costly pitfalls and make your first home-buying experience a success! By avoiding these common mistakes, you'll be well on your way to buying your first home with confidence! If you are looking to buy your first home, do not worry, Kiefer has many exciting projects coming up that might be perfect for you. All you need to do is email us at info@kiefer.capital and our team will connect with you.