Foolproof Strategies to Avoid First-Time Home Buyer Slip-Ups

couple looking at a home
Young happy couple shopping for a new home

There’s a lot to consider when buying a home, especially for the first time. Even a seasoned home buyer may make some critical mistakes with a mix of emotions, decision-making, and cash flow to look after. Left unchecked, this could lead to buyer’s remorse later on, and that’s not a good thing. 

To save you from lingering frustration and tons of headaches, we’ve listed several tips you can use as a home buying guide.  

Consider All Home and Lender Choices 

Unhappy young couple in financial trouble at home

A common trap that first-time homebuyers fall into is sticking to one home or lender. Usually, the first financial institution or agent they talk to becomes the only option. And while this can establish trust between parties, this could severely limit your options. 

We recommend checking the market for different prices, may it be for a home or a lender. Having those options handy before making the big calls ensure that you’re making an informed decision. 

For lenders, make sure to compare rates, fees, terms, and other services. Also, check customer feedback from forums or their social media. You may want to look for other home acquisition alternatives like Ijara CDC. 

For homes, list what you’re after in a home – location, neighborhood, amenities, etc. Make sure that the property is near a school, your work, or other important places you need access to. Consider as well if it’s under an HOA and if you’re amenable to their rules. 

Decide on a Budget – And Stick To It 

Determine the monthly budget for our home

It’s tempting to spend all your money to get the house of your dreams. What started as a dream may become a nightmare when your mortgage payments become staggeringly high. 

In addition to paying the mortgage, you’ll also need to consider other expenses: moving costs, buying new furniture, repair costs, and home repainting. You have food, utilities, and gas money to consider as well, right? 

That’s why sticking to a fixed budget works best when home buying. It gives you a realistic expectation of your recurring expenses after buying the house. Use our nifty calculator to get an estimate for your budget. 

Maintain a Good Credit Score 

Credit report with score on a desk

Your credit score plays an important role in your home buying process. Lenders will review your credit report during the qualification process to ensure you can pay what you borrow. 

If you’re planning to go home buying, avoid making drastic changes to your credit score. These include opening new accounts, missing payments, and making large purchases on your active credit lines. 

For those struggling with their credit, catching up on late payments boost your score. You can also reduce your spent amount to around 30% of the overall limit. Taking over an old account in good standing usually leads to a better result. 

Check out our article regarding credit scores to get more tips to learn more. 

Check for All Available Home Loan Options 

Office meeting with real estate agent. Couple of serious future buyers considering house variants and options on computer screen. Realtor helping clients take important decision and make right choice

A first-time home buyer usually faces the dread of limited financing options. Due to rising prices for residential properties or a limited budget, some struggle to have enough funds for the down payment. And if you’re credit score isn’t high enough, you’d face either soaring interest rates or not getting a loan at all. 

Thankfully, you can go with other home acquisition options other than bank financing. Government-issued programs are available to help you secure a home, like loans from the FHA, VA, and USDA. These programs have different requirements, so it’s best to check them and see which one fits your situation. 

Additionally, you can also consider halal home loans as your financing option. Companies like Ijara CDC offers Sharia-compliant home acquisition options that can help you with securing a riba-free/interest-free home.    

Take Your Time with the Home Buying Process 

couple taking their time after buying a home

Buying your first house isn’t a race. While you may compete with other buyers for a particular property, you don’t have to rush the process. It also doesn’t help that rushing with major decisions is a recipe for disaster. 

The home buying process is long and complex. Going from 0 to 60 without a definite plan can hurt a lot of factors – your loan applications, funds, and your prospective property. 

A trick to successful home buying is making a concrete strategy and checking everything. You have to review each one, from the property location to the fine print on the loan application. This makes sure you’re getting the best deal and boosts your chances of securing a loan or financing.   

Make Home Buying Relaxing and Hassle-Free 

Buying your first home is like going through a roller coaster – a mixed bag of fear, excitement, and other emotions. With those feelings running all over, it’s easy to make critical mistakes. But with these steps, you should perform like a pro home buyer. And who knows, maybe you can even save up on home buying expenses. 

Jino Postigo