Buying your first home can be a blessing or can be turned into the worst experience of your life. It all depends upon the planning and things you do before buying a house. Especially first-time homebuyers take this buying process easy and get into trouble. Before buying a house, you need proper planning and strategy to avoid a nerve-wracking experience.

Finding a dream home is the first step; later, buyers have to find a mortgage and many more. Usually, first-time homebuyers commit common mistakes that should be avoided. Our team stated some common mistakes homebuyers (mostly first-time homebuyers) made.

You, as a buyer, can learn and easily avoid these mistakes and make the home buying experience smooth and hassle-free.

Here are the mistakes to avoid when buying a house;

1. Keep an eye on credit issues

Credit issues are the main point where most home buyers fall. Credit issues included late payment of bills, car loans, and debt collection. These faults lower your credit score and negatively impact your credit report. By considering these, mortgage lenders offer you less or reject your application right away.

So, keep an eye on your credit score. If your credit report has negative items, improve it by paying your bills on time, trying to pay more than usual on your debt, and try not exceeding your available credit limit. By doing these things, you can boost your credit score.

Pro-Tip; be patient because improving credit score takes time.

2. Don’t go above your limit

Remember, homeownership comes up with extra expenses; besides mortgage payment, you have to spend on repairs, maintenance, insurance, tax, etc. If you buy an expensive home than you can afford, you end up with a house poor and experienced buyer’s regret.

Sometimes mortgage lenders offer you more than your limit, and new home buyers accept the deal. After that, all their monthly income goes to housing, and they face a financial crisis.

Typically, prospective buyers can afford a loan of 2 to 2.5 times their gross annual income. But we don’t advise spending all on home buying. Because by doing so, your monthly payments exceed, and you do not manage the mortgage, bills, and other payments.

Pro-Tip; first-time homebuyers, don’t spend above your decided budget.

3. Make an absolute need list

There is a difference between what you need in your house and things that are necessary for you in your house. Make a list of absolute need things that are non-negotiable, that you actually need in your house, like how many bathrooms you need, how many bedrooms you want in your home.

By knowing your absolute need list, you can discuss it with your real estate agent and narrow your search to concerned places. This practice saves your time and also saves you from emotional struggle.

4. Do hire a real estate agent

Home buying is not a solo thing, especially when you have no experience. Hire an experienced realtor; he helps you find a home and make buying convenient. He knows your demand and narrow down your searches, helps in making an offer to the seller and suggests what house you are going to buy, and also act as a closing agent.

Pro-Tip; don’t do widely lowball offers.

5. Avoid changing jobs and buying cars

For mortgage approval, you have to show your job stability and a continuous source of income, in this case, is your salary. You are changing your job even though it is for your benefit, which costs you rejection or complication of loan approval. So, avoid changing your current job until after the loan closes. If switching job is necessary, tell your lender in advance.

Buying a car is exciting, and you are trying to improve your living standard. But the timing of buying a car when home buying is in the process is not a wise decision. Loan pre-approval is directly dependent upon your credit and debt load, while buying a car makes more load on your debt and makes the loan approval difficult.

6. Moving money around

Avoid moving money in and out of your account before buying a house. Typically, lenders see it fishy or sometimes want payment proof as well. Try to stabilize your account at least two months “seasoning” before house buying because lenders see it as your financial stability.

7. Unrealistic expectation and stressing too much

These two are the main mistakes that every home buyer should avoid. Real estate is a big ocean, and it has too many processes and too many people involved. So don’t make unrealistic expectations regarding timeframe and loan approval. Don’t take stress because it is time taking process; make yourself educated through the process, ask questions and enjoy the journey.

By reading these, you get the idea what to adopt and what to avoid while buying a house for yourself.

Pro-Tip; have enough money to close the deal and don’t empty your emergency fund.