Home buying doesn’t begin with home searching; it begins with a mortgage pre-approval. Often, first-time home buyers fear getting pre-approved because they’re afraid the lender may tell them they do not qualify for a mortgage or they qualify for a loan smaller than expected. However, by getting preapproved, buyers will make a financial decision rather than an emotion one.
Another mistake first-time home buyers make is not thinking of a house as a long-term commitment. If a buyer may have to switch jobs in a year or two and may have to move for the job, they should think twice about buying a house. Ideally, buyers should picture themselves living in the house for five to seven years.
Some first-time buyers make the mistake of spending all of their savings on the down payment, closing costs, and coming up with a 20 percent down payment to avoid paying for mortgage insurance. However, most real estate experts advise against this because the borrower will be left with no savings at all for home repairs and other unexpected expenses.