5 Mistakes to Avoid Before Buying Your First Home

Buying your first home or apartment is a daunting process for many people, but doing your research beforehand will ensure that you start the journey with as much knowledge as possible. Reading up on the dos and don’ts of home buying before you start will make your experience much more enjoyable.

Rob McGibney, president and CEO of homebuilder KB Home, shares five common mistakes first-time homebuyers make, and how to avoid them.

Think you need a 20 percent down payment

Many people believe that they must have a large savings account and an extremely high credit score in order to begin the home buying process.

According to a recent survey conducted by KB Home and conducted by The Harris Poll, only 36 percent of U.S. adults know that a 20 percent down payment is not actually required to buy a home. Additionally, only 28 percent of those surveyed knew that it is actually possible to get approved for a mortgage with a credit score in the 500s.

“The most common mistake people make is not starting the home buying journey because they think a home is out of reach,” McGibney says, noting that first-time homebuyers may qualify for special programs.

McGibney recommends working with a trusted advisor, such as a loan officer, to help you better understand resources and programs. For example, McGibney explains that Federal Housing Administration (FHA) loans only require a 3.5 percent down payment and Veterans Administration loans don’t require any down payment, making the home buying process easier for many people.

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Feeling pressured into buying a home that isn’t right for you

McGibney notes that homebuyers don’t always commit to spaces they’re really interested in over the long term.

“One of the biggest mistakes people make is feeling pressured into buying a home they don’t love or that doesn’t fit their lifestyle, and this is especially true when buying a pre-owned home,” he says.

Buying a home you don’t love can quickly lead to outgrowing your space or requiring costly renovations, McGibney explains. As such, McGibney encourages prospective homebuyers to consider a variety of housing options, including new construction, which can be easily customized from the start.

Consider only initial costs

McGibney says when buying a home, it’s important to be “thoroughly thoughtful” about the process.

“Many people make the mistake of thinking only about the initial cost rather than the total cost over time and the value of the property that comes with owning a home,” says McGibney.

This means that homebuyers will want to consider costs associated with home repairs, utilities, renovations, etc. It is also valuable to carefully plan what the coming years might look like, so that homebuyers know what to expect.

Don’t Look for an ENERGY STAR Certified Home

McGibney says new home buyers will want to prioritize finding a home with an ENERGY STAR certification because it will provide more comfort and lower utility costs than new homes without the certification.

He noted that less than 10 percent of homes nationwide meet this standard, but all KB homes have this certification.

Working with anyone without prior research

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

McGibney points to how his teams work closely with clients every step of the way. “We collaborate on everything from sales to design, construction to closing and after move-in, because we’re committed to delivering an exceptional homebuying experience,” he says.

McGibney encourages people to look at third-party review sites like TrustBuilder to look at customer ratings and reviews.