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3 Common Mistakes Made By First-Time Homebuyers

by Alfred Parker

Buying your first home can be one of the most exhilarating times of your life. You are moving on from the world of renting and landlords and into being your own boss. You are free to do what you want inside of the home without having to worry about anyone telling you what you can and cannot do. Unfortunately, many first-time homeowners end up making a few mistakes when purchasing their first home. To make the experience a positive one, check out some of the common mistakes others have made when in your situation.

Not Choosing the Right Mortgage

While many people who are getting a home loan for the first time will opt for the standard 30-year mortgage, that doesn't mean it is always the best option for them. You should consider how long you are planning to stay in the home. For those who are planning to move in the next few years, an adjustable-rate mortgage might be the best option. On the other hand, if you want to pay your home off quicker, consider going with a shorter term, such as a 10-year loan. In doing so, your home will be paid off quicker and you can enjoy being debt-free. Consult with professionals, such as Dynamic Mortgage Concepts Inc, to see which options will work best for you.

Paying Too Much for the Home

Just because you were approved for a home loan for $200,000, that doesn't mean you have to spend that much on a home. If you find a home that you love for $200,000, don't just say you will take it. Make an offer on the home. See if you can get it for $175,000 and save even more money on the total cost of owning your own home. Negotiation is the key to owning your own home and saving money.

Forgetting to Budget for Any Repairs Needed

When renting, the landlord has to pay for repairs to all of the major components that break down. As a homeowner, that is now your job. You have to think about how much it is going to cost you when a furnace breaks down or the hot water heater goes out. All of this needs to be factored into your budget when purchasing a home. You don't want to get yourself in a position where you cannot afford to pay for the repairs on your home.

By paying attention to the tips above and not making those mistakes, you can enjoy owning your own home and the freedom that comes with it.

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