You may be wondering what the whole process is to buying your first home. Should you go find a home first, should you find out if you qualify for a loan first, there are so many questions.

With this list, we will begin with your mortgage pre-approval and move you all the way through to the end with your move-in.

One thing you may want to do is to enroll in a home buyer education with your lender. If they don’t have a program, make sure you are working with a lender who is knowledgeable and not just working from a call center. Try finding a local lender in your area who can meet with you to walk you through the process.

So, let’s get started and uncover those 10 mistakes first-time homebuyers should avoid.

NUMBER ONE: ASSUMING YOU NEED 20 PERCENT DOWN

First off, don’t assume that you need 20% for a down payment.

There’s a common misconception among first-time homebuyers that you need a 20 percent down payment to buy a house, but it’s not true.

A larger down payment can get you a better rate, lower your monthly payment, and increase your equity, so it’s a great choice if you can afford it. Otherwise, you can buy a home with as little as 3 percent down. Different loans have varying credit score and down payment requirements, and none of them start at 20 percent.

Decide what down payment amount is right for you based on your personal financial goals and budget.

First-time home buyers make a median 6% down payment.

NUMBER TWO: WAITING TO START SAVING

Let’s move on to number two which is waiting start saving money.

You’ll need cash up-front to cover your down payment and closing costs so, you’ll need to be prepared for that. Plus, you may need to purchase things like appliances or new furniture once you move in, so be prepared.

Create a separate account for your home-buying savings so you know exactly how much you have to contribute to your house. Automatic deposits can help you stay on track and grow your savings without having to remember when to contribute and how much.

NUMBER THREE: SAVING FOR A DOWN PAYMENT ONLY

The third mistake to avoid is only saving enough money for your down payment.

Yes, your down payment will account for most of your home savings goals, but it’s not the only cost to consider.

You’ll be responsible for several closing costs when you buy a home. Closing costs can include these expenses:

Down payment — at least 3% of the home’s purchase price Loan origination fees — 1% of the home’s purchase price Title insurance — varies by location Homeowner’s insurance — 1 year of premiums Private mortgage insurance — up-front premium or monthly payments Property tax — 6 months Escrow fees — 2% of the home’s purchase price

You also want to save money for your move-in plan. This may just be a couple hundred dollars for professional movers. You may also want to install a fence or purchase new kitchen appliances. You’ll be able to better estimate your moving costs once you choose a house but anticipate these extra expenses from the beginning.

NUMBER FOUR: BUYING MORE HOME THAN YOU CAN AFFORD

The fourth mistake to avoid is buying more home than you can afford.

Receiving a mortgage pre-approval for a larger loan than you expected is exciting, but that doesn’t mean you should take out a mortgage that large. You know how much you can afford to pay on housing each month.

Create a budget that makes sense and gives you some wiggle room. Take into account your monthly income, recurring expenses, and savings goals to determine how much house you can afford. Buying more house than you can comfortably afford may generate homeownership stress and make it hard to meet your other financial goals.

If you think you can afford more than you currently pay in rent, try following that budget for a few months and contribute the extra housing cost to your savings. You’ll see if it’s a comfortable amount to spend on housing and how it impacts your finances before making the commitment.

NUMBER FIVE: GETTING PRE-QUALIFIED INSTEAD OF PRE-APPROVED

The fifth mistake is only getting pre-qualified and not pre-approved by your lender.

Mortgage pre-qualification can provide you an estimate of what loans and rates you’re eligible for, but it’s not a guarantee. A mortgage pre-approval letter guarantees a

mortgage amount and interest rate and gives you buying power to submit an offer on a house. If you’re serious about home-buying, you want a mortgage pre-approval letter.

NUMBER SIX: BUYING WITHOUT A LONG-TERM PLAN

The sixth mistake to avoid is buying a home without creating a long-term plan.

Buying a home is probably the biggest investment you will make in your lifetime, and you want to stay long enough to build equity. Your first home doesn’t have to be a forever home but having a long-term plan can help you choose a house that fits your lifestyle goals.

Be sure to balance your long-term needs, like a growing family or career goals, with what you can afford and what’s available in the area.

NUMBER SEVEN: PASSING ON A HOME INSPECTION

The seventh mistake to avoid is passing on a home inspection.

It may be tempting to save some money and skip out on the home inspection, but if you are buying a home that is over several years old, you want to most definitely find out what’s up with the home you are buying.

A home inspection is different from an appraisal. The appraisal will provide the value of the home and may show some items that require repair. The home inspection is just that, an inspection of the property to find out if it is in working order. The home inspector will evaluate a house to identify major structural issues, home repairs, and the condition of included appliances. Their goal is to make sure the home is livable and that everyone fully understands the house’s condition before the sale is finalized.

NUMBER EIGHT: MAKING AN EMOTIONAL DECISION

The eighth mistake to avoid is making an emotional decision.

No question, buying your first home is an emotional experience and it can be hard not to let your excitement take over. It’s also a large investment that you should make rationally considering your personal needs and finances.

Create a list of needs and wants so you can judge a house and community by how it realistically fits your lifestyle. Stick to your budget and talk the purchase over with your real estate team or a friend for an additional perspective.

NUMBER NINE: ASSUMING YOU KNOW THE LOCAL MARKET

The ninth mistake to avoid is assuming that you know the local market.

Even if you’ve lived in an area your whole life, your real estate agent can provide you with a local comparative market analysis (CMA) to inform your offer letter and negotiations.

A CMA compares recently sold and similarly valued homes in your location to determine a fair market value. This process is separate from a home appraisal and tells you how much the home may sell for and how quickly, considering current trends.

NUMBER TEN: OPENING OR CLOSING NEW LINES OF CREDIT

The tenth mistake to avoid is opening new or closing existing credit lines before you close.

After your offer is submitted on a house, the lender will perform a final credit check before providing the mortgage loan. New credit inquiries or lines of credit could impact your mortgage total and rates, potentially delaying the closing. Be sure to work with your lender on anything you need to do and don’t make any large purchases like buying that brand new truck that you think will look great in your driveway!

Buying a home requires new information and challenges, but an experienced real estate and lending team and plenty of research can help you avoid these first-time home buyer mistakes.

Thanks for watching. If there is anything we can do to help you with your home financing goals, please don’t hesitate to call.