Own your dream home in 2024: Learn from the top 5 mistakes first-time buyers make

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With fluctuating inventory and interest rates, the current housing market can be perplexing, particularly for first-time buyers. Many prospective buyers might feel intimidated by the recent increase in home prices. This evolving landscape often seems like a daunting roller coaster, leaving first-time buyers uncertain about where to start. However, by understanding and avoiding these common mistakes, you can navigate the market with greater confidence and success.

1. Not defining your must-haves and nice-to-haves: Before embarking on a home search, clearly identify your must-haves and nice-to-haves. Every homebuyer has different priorities, so make a list, but also remember to be flexible. Flexibility can open more possibilities in your budget.

Remember that this is your first home, even if you must compromise on some features. It may not have all the bells and whistles, but you may be able to add features down the line or use this property as a stepping stone for your dream home.

2. Skipping the research

Many first-time buyers dive into the market without adequate research, leading to missed opportunities and unwise investments. This is understandable because there are a lot of unknowns. To avoid such pitfalls, there’s an array of solid educational resources online for homebuyers that can help you navigate the process.

Some general research tips:

• Use specialized calculators to understand how much your ideal home costs and determine your price range.
• Explore nearby neighborhoods that might better align with your budget.
• Before applying for a loan, research the necessary documentation required by lenders.
• Look into the amenities, schools, and public transportation options in your potential new neighborhood to ensure they meet your lifestyle needs.

The deeper your understanding of the market, the more prepared you will be to make well-informed decisions.

3. Not locking in a mortgage rate

Mortgage rates fluctuate over time. Today’s rate may not be the rate tomorrow. Failing to lock in a rate when it’s favorable can be a costly mistake. Programs like Chase’s Homebuyer Advantage Program offer a ‘Lock & Shop’ feature, allowing you to lock in your mortgage rate for 90 days with no upfront fee. You’ll also have the option of a one-time float-down rate if rates drop further before closing. Once you find your dream home, you can proceed with added confidence, knowing you’ll close quickly with Chase’s  Closing Guarantee.

Securing your rate in advance not only offers financial stability but also ensures peace of mind and a smoother, more predictable path to acquiring your home.

4. Overlooking financial assistance

Many first-time buyers are unaware of the various financial assistance programs available to them. These programs are important because they can significantly reduce the initial costs of buying a home. For example, Chase’s Homebuyer Assistance Finder helps you discover grants and programs, including their $5,000 grant for eligible homebuyers in more than 15,000 neighborhoods throughout the U.S.

5. Going alone without professional guidance

You don’t have to go through the home-buying process alone. Work with an experienced real estate agent and a home lending advisor to help you find, negotiate, and buy your first home. Once you are ready to shop, a tool like Chase Agent Express can help connect you with reputable professionals. A local agent will have the knowledge to point you toward affordable neighborhoods and hidden gems so you can find the home that feels right. A home lending advisor can also help you understand what loan options are right for you and any assistance programs you may be eligible for. Throughout your home-buying journey, they’ll ensure your needs and best interests are met.

Homeownership in 2024 is within your reach. Don’t make these five mistakes, and you’ll be well on your way to buying your first home. For access to invaluable tools to help you on your path to homeownership, visit Chase.com/Afford. Good luck, and happy hunting!