REALTOR CONNECTION | BUSINESS PORTAL
cropped-logo.jpeg
  • Homes
    • Communities
    • Single-Family Homes
    • Cottages
    • Floor Plan Library
    • Live Video Appointments
  • Elliott
    • About Us
    • The Elliott Homes Referral Program – it pays to talk about us!
    • Exceptional Experience
    • Design Studio
    • Superior Craftsmanship
    • Our Team
    • Our Partners
  • Resources
    • Live Video Appointments
    • Promotions & Events
    • Galleries
    • Resource Library
    • Blog
  • Connect
    • Realtor Connection
    • Connect With Us
    • Careers
    • Land Acquisition
    • Privacy Policy
  • About Us
Menu
  • Homes
    • Communities
    • Single-Family Homes
    • Cottages
    • Floor Plan Library
    • Live Video Appointments
  • Elliott
    • About Us
    • The Elliott Homes Referral Program – it pays to talk about us!
    • Exceptional Experience
    • Design Studio
    • Superior Craftsmanship
    • Our Team
    • Our Partners
  • Resources
    • Live Video Appointments
    • Promotions & Events
    • Galleries
    • Resource Library
    • Blog
  • Connect
    • Realtor Connection
    • Connect With Us
    • Careers
    • Land Acquisition
    • Privacy Policy
  • About Us
Quick Move-In
Locations
The Elliott Difference
2021 St Jude Dream Home
Virtual tours & floor plans

First-Time Home Buyers: How to Overcome Home Buying Mistakes!

Buying your first home is a daunting thought. There are many things to consider when purchasing a home for you and your family. Information is available online, but with so many sources, it may lead to confusion and conflicting advice. That is the reason for explaining mistakes which are typical of first-time home buyers.

MISTAKE NUMBER ONE: Waiting until you have a 20% down payment before you purchase.

There are several low or no down payment mortgage plans available. Government loans (those provided or insured by a government agency) may require only 3.5% down. These include FHA or no down payment at all, such as USDA. For those who qualify, there may even be grant programs which will provide the down payment for you. Yes, these require certain conditions, but are worth pursuing. It’s also best to work with a respected mortgage lender so they can better guide you through the process.

The other compelling reason to purchase sooner is the longer you wait, the more expensive your new home purchase will likely be. According to Zillow, the median price of a home in the US is $228,800, with real estate increasing about 3% annually. So, 3% on $228,800 is over $6,800 a year. Looking at these numbers, you would have to save over $600 each month and that is just to stay even. Price inflation works for you as a homeowner and against you as a potential purchaser.

MISTAKE NUMBER TWO: Listening to the experts may lead you to the wrong decisions.

How is that possible? They want to help you, right? Of course, they do! The experts may be real estate professionals, your parents or online sources and their knowledge may provide generalities that will apply to others, but not specifically to you. For example, you need to buy a four-bedroom home with two and one-half baths, because you need to think about resale. Demographics have changed in the last decade or two, families are smaller, single people purchase homes more frequently than in the past and people move often.

Your needs and preferences are unique to you. Buying in the right school district may not apply to you or working from home might mean commuting is not a factor in your decision. Yes, you should take into consideration the advice from those you respect, but as well intentioned as they may be, their advice may be based on their experiences and prior decisions and not be applicable to your situation.

If I had listened to my dad’s advice – You should have a minimum down payment of 25%, pay no more than 20% of your income for a mortgage payment and buy a home of more than two-thousand square feet – I’d still be renting!

MISTAKE NUMBER THREE: You purchase the wrong home.

That does not make any sense. Why would anyone do that? They would not intentionally, but there are factors to consider in the market today. Going back to the “experts,” they may tell you that you will live in your first home for only five to six years, so buy a townhome or smaller single-family home. Don’t worry if it’s not exactly what you want, your second home will be the one you live in for many years.

In the past, that was generally true, but with mortgage rates at historical lows today, you can afford more than you could years ago. For example, a $200,000 mortgage at 3.5% today is $898 for principle and interest. The same mortgage at 5% is $1,024. That is an increase of $126, which means at the lower interest rate, you have $28,000 more purchasing power. This may give you the opportunity to purchase a home you can stay in for many years, all while saving you time, money and helping you build more equity into your current home.

  • Category: Home Buying, Market Tips, New Home Planning, New Home Tips, New Homes, Uncategorized
  • Date: August 12, 2020

Search

Categories

 
  • Community Info
  • Custom Home Tips
  • Elliott Homes News
  • Featured Team Member
  • Floorplan Tips
  • Home Buying
  • Homeowners
  • Market Tips
  • New Home Planning
  • New Home Tips
  • New Homes
  • Organization Tips
  • Press Release
  • Special Events
  • Spring Tips
  • Uncategorized

Tags

Tags
acadian gardens new homes best home builder gulf coast biloxi new homes d'lberville new homes design design center new homes duckworth cove new homes Elliott Homes elliotthomes elliott homes new homes family gulfport ms homebuilder gulfport ms new homes gulfport ms new homes for sale gulfport new homes home builder dlberville ms homebuilder gulf coast homebuilder ocean springs ms Home Buying Myths homes for sale dlberville ms homes for sale ocean springs ms malpass west new homes my elliott home my elliott homes new home New Home Myths new homes new homes biloxi ms new homes dlberville ms new homes elliott homes new homes for sale biloxi ms new homes for sale gulf coast new homes for sale gulf coats new homes gulf coast New Homes Gulfport New Homes in Mississippi new homes malpass west new homes mississippi new homes ocean springs ms new homes pascagoula New homes pass christian ms New Home Tips palmetto pointe new homes pass christian ms new homes tips

Share on social

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on email

Latest Posts

Market Movement

Mortgage rates trended upward last week but remain in a historically low range. The Case-Shiller home price index reported the fastest pace of home price

Read More »

First-Time Home Buyers: How to Overcome Home Buying Mistakes!

Buying your first home is a daunting thought. There are many things to consider when purchasing a home for you and your family. Information is

Read More »

Elliott Goes Pink in October!

This October, brand-new selections are coming to the Elliott Homes Design Studio. To celebrate our new release, we’re giving 30% of Design Studio Upgrade proceeds

Read More »

Contact US

Elliott Companies, LLC
1402 Pass Road, Gulfport, MS 39501

1.844.BUY.ELLIOTT

REALTOR CONNECTION | BUSINESS PORTAL
Facebook-f
Instagram
Pinterest
  • Quick Move-In Homes
  • Resources
  • St. Jude Dream Home
  • Connect
    • Realtor Connection
Menu
  • Quick Move-In Homes
  • Resources
  • St. Jude Dream Home
  • Connect
    • Realtor Connection

Photos are representative and information is subject to change without notice. © 2021 Elliott Homes, LLC. All Rights Reserved Equal Housing Opportunity Privacy Policy

Share this page on Social Media

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest