It can be extremely stressful and overwhelming for first time home buyers. This is especially true if they aren’t using programs like the Chenoa Fund. Doing everything on your own can make things much more difficult and can often lead to mistakes being made that could’ve been prevented. Since these can result in some pretty bad consequences, you’ll want to do what you can to make sure you don’t make them. With that said, here are 5 first time home buyer mistakes to avoid in Los Angeles.
Buying Too Much House
One of the biggest mistakes that first time home buyers make is buying way too much house. They get excited and end up with a house and monthly payment that’s way above their means. Not only can this make every month extremely stressful, but it can also result in them actually losing their house. The best thing to do is use a mortgage calculator and see how much you can afford based on the highest amount you can comfortably pay every month.
Talking to Only One Lender
You’ll also want to avoid talking to only one lender. Many people who are buying a home for the first time end up taking the first mortgage offer they get. They don’t take the time to talk to multiple different lenders and don’t actually check out what options they have. The issue with going with the first lender you talk to is that you could be giving up mortgages that have much better terms and payments. The safe thing is to check with at least 3 different lenders to see some of your options.
Ignoring First-Time Home Buyer Programs
Many people don’t actually realize that there are programs out there that are specifically aimed towards first time home buyers. Not only do some of these programs help with down payments, but they can also help with things like closing costs. One thing to keep in mind is that each area and state are going to have different programs and requirements, so make sure you check out what’s available in your area.
Another mistake you’ll want to avoid is emptying savings. A lot of people end up completely depleting their savings on things like the down payment and closing costs. While this might seem alright in the short term, it can really mess things up in the longer term. Owning a house comes with many responsibilities and any emergencies that come up will be your responsibility. Not having enough money saved up to take care of these things can leave you in a tough position and cause much more hassle than need be.
Making a Too-Small Down Payment
One final mistake that first time home buyers make is making a down payment that’s too small. While you don’t necessarily have to pay 20%, you want to make sure you pay at least around 13%. While some places will let you make a payment lower than that, you’ll end up having a higher monthly payment and more costs to deal with in the long run.
Now that you know what to avoid and that you can get help from programs like the Chenoa Fund, you’ll be able to have a better experience buying your first home. Since it’s exciting and a big step, you want to have the least amount of stress as possible! Make sure you do these things to help make everything go as smoothly as it can