Common Mistakes Made by First-Time Richmond Homebuyers
Being first-time Richmond homebuyers can feel like a surreal experience. The excitement of having a Richmond home of your own mixed with the overwhelming nature of navigating through the process can be a lot to process.
To help first-time Richmond homebuyers, consider these common mistakes to put yourself in a position to succeed.
Falling in Love with a House
Getting emotionally attached to a house is easy for first-time Richmond homebuyers to do, but also a big mistake. When you allow yourself to think that you have found the “perfect” house you can easily trick yourself into paying more than you should or overlooking problems that you shouldn’t.
Not Knowing Your Credit Score
A first-time homebuyer’s credit score is one of the major factors deciding if he or she will be approved for a mortgage or not. Surprisingly, the majority of people don’t know what their score is.
When you know what your credit score is you will also have a good idea on what you need to do to improve it, if anything.
Not Having Enough Money
The average down payment is 20%, but there are additional closing costs involved that you could end up paying as well. Talking to a lender will help you have a good estimate on how much money you will need to have saved.
In addition to your down payment savings, you will want to have some money in savings for those unexpected home maintenance items that happen, like a broken water pipe.
Skipping Pre-Approval
Getting pre-approved lets first-time Richmond homebuyers know how much of a house the lender will approve you for. It also keeps the process moving along faster when your offer has been accepted because your lender will have the documentation that they need from you.
Having Private Mortgage Insurance
If you are able to put 20% down you will not need to pay for private mortgage insurance. This can also apply if you are buying the house for well under the market value.
If you do not have 20% equity in the house you will be required to pay for this additional insurance until that 20% equity mark is achieved.
Not Shopping for Homeowner’s Insurance
If you have a mortgage you will be required to pay for homeowner’s insurance, and if you don’t have a mortgage it is still a good idea to have insurance. Insurance will range in price depending on what company you use, so shop around.
Not Following the Rules
Even though there are fewer rules to follow as a Richmond homeowner compared to a renter, you are not free and clear. If the house you buy is part of a homeowner’s association you need to know what the rules are.
Skipping the Home Inspection
A home inspection can be your saving grace from getting trapped owning a house with major problems. Do not skip it.
There is a lot of work and research involved in buying a Richmond house. Use this above advice for first-time Richmond homebuyers to avoid making mistakes you will regret in the future.