3 Common Mistakes First-Time Home Buyers Make

First-time home buyers are notorious for making mistakes. The process of buying a house for the first time can feel pretty overwhelming. With such a big step, people are bound to make mistakes from time to time. If you can identify the mistakes before you make them, it will help you avoid problems. Here are a few of the most common mistakes that first-time home buyers make.

1. Buying Too Much House

The last thing that you want to do is get in over your head in your first mortgage. However, that is exactly what some people do. They are used to living in a cramped up apartment for the last few years and they want a large house. The promise of more square footage and extra amenities is hard to pass up. While you might qualify for it according to the bank's lending ratios, it does not mean that you should buy it.

Go over your finances as they are at the present time. Can you comfortably afford the potential house payment, taxes, and insurance? If you do not feel comfortable that you could afford it for the foreseeable future, it is best if you just avoid it all together. Getting in over your head can cause you a lot of stress for the next several years.

2. Not Using a Buyer's Agent

While you can technically get by without the help of a buyer's agent, the assistance that they can provide is very valuable. A buyer's agent can help you navigate through all of the issues that might come up. They can help you find the house that you really want and can afford. They can connect you with the proper lending source and see you through the mortgage process. Then when it comes time to close, they will be right there with you. It's nice to have someone help you along the first time.

3. Ignoring First-Time Buyer Programs

Before you buy your first home, you are in a position of strength. The system is set up to help you get into your first home at a reasonable price. However, once you get through that first house and mortgage, your advantages run dry. Many first-time home buyers fail to even consider the many first-time home buyer programs that are out there.

First-time home buyer programs are there to help you with the interest rate, lower the down payment, and help your chances of getting approved. There are even some down payment assistance programs out there that will actually give you the money you need for the down payment on your first house. Ignoring these programs is like turning away free money. Any time you are leaving free money on the table, you are potentially making a large mistake.

First-time home buyer programs are there to help get you in your first house. If you do not take advantage of them before you buy your first home, you will never have access to them again.