Purchasing your first home is an amazing accomplishment and a big milestone in your life. That being said, oftentimes, most first-time home buyers face many difficulties and even make mistakes. We want to discuss common mistakes that these first-time homebuyers make and how you can learn from them.
- Not Thinking About Home Ownership Costs
While you probably saved up a large chunk of money to use towards the down-payment of your house, you may not have been thinking about the costs of these other pieces of owning a house.
- Home maintenance (homeownership issues)
- Lawn equipment
- Misc. Items
2. Only Paying the Minimum
While some people try to avoid putting more money down for their down payment, they often regret it after-the-fact. Mortgage payments and daily life expenses can add up, so its good idea to pay as much off as quickly as you can.
3. Not Having An Emergency Fund
Another mistake home-buyers make is not having an emergency fund. We know buying a house can be daunting, but it’s important to always be prepared for an emergency regardless. At Sherman Wealth we recommend building an emergency fund that can cover your monthly expenses in case of an emergency or termination of income.
4. Not Understanding How Refinancing Works
As the market volatility continues and interest rates fall, it’s important to understand and consider refinancing. Especially given the current environment, you should think about refinancing in order to save some money and to get you one step closer to becoming debt free.
We know purchasing your first home can be an overwhelming and intimidating process, which is why you should not have to do it alone. Discuss with mortgage and financial professionals to help map out your situation prior to making the big purchase. If you have any questions, email us at email@example.com.