5 Mistakes to Avoid Before Buying a Home for the First Time

Purchasing your first home or apartment is a daunting process for many, but doing your research ahead of time will ensure that you embark on this journey with as much knowledge as possible. Reading up on homebuying dos and don’ts before getting started will make your experience much more enjoyable.

Here, Rob McGibney, the president and COO of homebuilding company KB Home, is here to share five common mistakes that first-time homebuyers make, as well as how to avoid them.

Thinking You Need a 20 Percent Down Payment Ready

Many people believe that they have to have a hefty savings account and an extremely high credit score in order to be able to initiate the process of buying a home.

According to a recent survey administered by KB Home and fielded by The Harris Poll, only 36 percent of American adults were aware that a 20 percent down payment is not, in fact, required to purchase a home. Additionally, only 28 percent of those surveyed were aware that it is indeed possible to be approved for a mortgage with a credit score in the 500 range.

“The most common mistake people make is not getting started on a homebuying journey because they think a home is out of reach,” McGibney says, noting that first-time buyers may qualify for special programs.

McGibney recommends working with a trusted counselor such as a loan officer to help you better understand resources and programs. McGibney explains that, for example, Federal Housing Administration (FHA) loans only require a 3.5 percent down payment, and Veterans Administration loans do not require any sort of down payment, therefore easing the home buying process for many.

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Feeling Pressured to Buy a Home That Isn’t the Right Fit

People who are purchasing homes are not always committing to spaces that they’re fully excited about for the long haul, McGibney notes.

“One of the biggest mistakes people make is feeling pressured to buy a home they don’t love or that doesn’t fit their lifestyle, which is especially true when buying a used home,” he says.

McGibney explains how buying a home you don’t love can lead to quickly outgrowing the space orcostly renovations. McGibney therefore encourages prospective homebuyers to consider a range of housing options, including newly constructed homes, which are easily customizable from the beginning.

Only Considering Initial Costs

When purchasing a home, it’s important to “take a long view” with regard to the process, McGibney says.

“Many people make the mistake of only thinking about initial costs rather than total costs over time and the equity gained by owning a home,” McGibney says.

This means that homebuyers will want to consider the costs associated with home repairs, utilities, renovations, and the like. It will also be valuable to make a thorough plan for what the next few years may look like, so homebuyers know what to expect.

Not Looking for a Home That Is ENERGY STAR Certified

Those purchasing a brand new home will want to prioritize finding one that is ENERGY STAR certified because it will offer greater comfort and utility cost savings compared to new homes without the certification, McGibney says.

He notes that fewer than 10 percent of homes nationwide meet this standard, but all KB homes do have this certification.

Working With Anybody Without Prior Research

When preparing to buy or build a home, McGibney emphasizes the importance of doing prior research and finding a trustworthy partner to work with, so the entire process moves smoothly.

McGibney touches upon how his own teams work hand in hand with customers through every step. “We collaborate on everything from sales to design, from build to close, and after move-in, because we’re committed to delivering an exceptional homebuying experience,” he says.

McGibney encourages individuals to take a look at third-party review sites such as TrustBuilder to examine customer ratings and reviews.