Being a first time buyer for a home can be nerve wracking so it helps to avoid some of these mistakes.

 

Don’t look for a home before applying for a mortgage. In a competitive market, if you aren’t pre approved then you could miss out on the home. You also don’t want to fall in love with a home you can’t afford. Be sure to talk to more than one lender. Many first time buyers get a mortgage from the only lender they talk to and this can cost a lot of money in the future.

 

A first time buyer shouldn’t drain their entire savings on the down payment and closing costs. You should still aim to have three to six months of living expenses in a mortgage fund. You may not need a 20% down payment and there are other options.

 

As hard as it is not to do, you shouldn’t base decisions on emotion. An emotional decision can cause you to overpay for a home and stretch your budget beyond your means