Buying your first home is an exciting milestone.
And the path toward homeownership is like everything else in life: It’s a learning experience.
If given the chance to go back in time, there might be a thing or two many first-time homebuyers would have done differently.
Before you take the homeownership plunge, you can learn from others who have taken the same path before you.
Krystal Frederick, a mortgage consultant with Dupaco's Real Estate Department, shared the three most common regrets she hears from first-time homebuyers:
- They rushed to purchase the first house they liked. "A lot of our members feel like they didn't take the time to look at more homes," Frederick said. "They fell in love instantly with the first or second house they saw and didn't proceed to look at more, because they got a little bit too excited about buying their first home."
- They didn't save enough for their down payment. Many first-time homebuyers wish they would have spent more time saving for their down payment to avoid PMI (Private Mortgage Insurance). Lenders typically require homeowners to purchase PMI when they obtain loans for more than 80 percent of their home's purchase price. The insurance protects the lender if the homeowner defaults on the loan. If you're considering homeownership, a Dupaco Money Makeover may help you free up more money to save for your down payment and closing costs.
- They didn't take the time to understand their credit score. Interest rates and closing costs are based on your credit score. If you're thinking about purchasing a home within the next year, schedule a Dupaco Credit History Lesson now to give yourself time to build your score before you need the loan. "A credit history lesson is vital for a first-time homebuyer," Frederick said.
For more first-time homebuyer tools, click here.
By Emily Kittle