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5 Mistakes Of First Time Home Buyers

Purchasing your first home is probably the most significant financial move you’ve made in your entire life. Even the cost of a car or four years of tuition doesn’t compare to the overall cost of a house, and given how important this purchase is, you’ll want to take it seriously, right?

To help you make the right purchase, NebraskaLand National Bank offers mortgage loans at our Nebraska bank locations, especially if you’re one of many first time home buyers. Additionally, with our residential loan services at NebraskaLand, you can also refinance your mortgage if you’re not a first time home buyer. In today’s blog post, we’ve compiled a list of some mistakes to avoid when buying your first house. Continue reading below to find out!

Not Knowing What You Can Afford
Have you ever heard the expression “Your eyes are bigger than your stomach?” Well, that expression also applies to finding and purchasing a house. When you’re looking for a home that fits your needs, the listing price should be one of the first things that you consider. Don’t go looking at a home that’s well over your price range, because what banks say you can afford and what you know you can actually afford or are comfortable with paying are not necessarily the same thing.

If you end up looking at houses that are outside of your price range, then you’ll end up longing after something that you can’t actually afford. This can then put you in a dangerous position of trying to stretch beyond your financial means, or cause you to feel unsatisfied with what you actually can afford or your current housing situation. Our community bank recommends avoiding this!

Failing to Account for Closing Costs
Your total home inspection is just one of many costs and fees associated with locking down on your first home. Buying a house also involves a host of closing costs beyond the down payment, and they tend to be pretty significant. The costs are due when you sign the final mortgage loan documents, and typically include things like attorney fees (if applicable) and title insurance.

Not Considering Additional Expenses
Finding, closing, purchasing and owning a home is just half the battle, if anything. Unless your house is brand new, you’ll have to invest some capital into renovations or general upkeep, and even if your house is new, you’ll still have to do some of those things down the line.

Once you’re a homeowner, you’ll have additional expenses on top of your monthly payment. Unlike when you rented your place and paid monthly payments, you’ll now be responsible for paying property taxes, insuring your home against disasters, and making any necessary repairs to the house as well mentioned above. These are important things to keep in mind.

Being Too Picky
Sure, you’ll want your new home to have everything that you could possibly desire in a home, but it’s also important to be realistic: sometimes, you might have to settle a little bit. When you’re going from renting a place to owning one, don’t be so inflexible while you’re looking for a house that you end up continuing to rent for significantly longer than you really wanted to.

First-time homebuyers, oftentimes, simply must have to compromise on something because their funds are limited. If you really want, you can always choose to continue renting until you can afford everything on your list, but you’ll have to decide for yourself how important it is for you to become a homeowner now instead of a few years in the future. Ultimately, you know your personal financial situation best, but the community bank is here to help.

Ignoring a Home Inspection Before Purchasing
You’re going to want to know the exact condition that your prospective home is in before you purchase it. Buying an older home is like buying a used car without getting it inspected by a trusted mechanic first - would you really trust the previous owner to sell it to you in perfect condition?

You don’t want to get stuck with a money pit or with the headache of performing endless unexpected repairs. If you’re nearing a purchase, make sure to keep your thoughts and feelings in check until you have a full picture of the house’s physical condition. Your patience and diligence in your potential investment will help you avoid a serious financial mistake that you’ll be stuck with for years to come. Plus, you can smugly boast about what a great deal you got on your home after endless months of searching.

More Questions? Get In Touch With NebraskaLand National Bank Today!

NebraskaLand has the experience and knowledge to guide you through the first time home buyer process so that you get the best deal in the appropriate amount of time that you deserve. Buying a home is traditionally a painstaking process, but with our mortgage loans and homeowner loans from our community bank, buying your first home doesn’t have to be painful! Get in touch with us by clicking here and taking the next step to owning the home of your dreams. 

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