Introduction

Embarking on the journey to purchase your first home in Spokane can be as thrilling as it is daunting. While the prospect of owning a home is exciting, the process involves several important steps and decisions that can be overwhelming for first-time buyers. To help you navigate this journey more smoothly and to avoid common pitfalls, we've compiled a list of mistakes that first-time homebuyers often make in Spokane’s real estate market. By understanding these mistakes, you can make informed decisions that lead to a happy and successful home buying experience.

1. Down Payment Misconceptions

Don't Assume You Need A 20 Percent Downpayment

Many first-time buyers in Spokane believe they need to save 20% of the home’s price for a down payment. However, this isn’t always necessary. Various loan programs in Spokane allow lower down payments, and some buyers qualify for down payment assistance programs.

2. Saving Strategies

Don't Wait To Start Saving For A House

Begin saving for your home as early as possible. Consider setting up a dedicated savings account and make regular deposits. The sooner you start, the more you'll accumulate thanks to compound interest.

3. Additional Costs

Don't Forget To Save For Closing Costs

Remember, buying a home isn't just about the down payment; there are also closing costs to consider. These can include fees for loan origination, home inspections, and more. Plan to have extra funds available to cover these costs.

4. Financial Planning

Don't Buy More Home Than You Can Afford

It’s easy to fall in love with a dream home that stretches your budget too thin. Ensure you get pre-approved for a mortgage to understand what you can comfortably afford before you start house hunting in Spokane.

5. Credit Awareness

Don't Skip Checking Your Credit Report

Your credit score plays a huge role in determining the interest rate on your mortgage. Check your credit early in the process to clear up any errors and to find ways to improve your score if needed.

6. Lender Options

Don't Only Speak To One Mortgage Lender

Shop around and speak with multiple lenders to compare mortgage rates and terms. This can lead to significant savings over the life of your loan.

7. Assistance Programs

Don't Ignore First-Time Home Buyer Assistance Programs

Spokane offers several programs to help first-time buyers with down payments and closing costs. Research and take advantage of these opportunities to make your home purchase more affordable.

8. Pre-Approval Importance

Don't Confuse Pre-Qualification and Pre-Approval

A pre-qualification is just an estimate, while a pre-approval is a more thorough assessment of what you can actually afford. Always aim for pre-approval when you start looking for homes.

9. Choosing an Agent

Don't Hire The First Real Estate Agent You Meet

Take your time to find a real estate agent who is well-versed in Spokane’s market. A good agent can make a significant difference by helping you find the best property at the best price.

10. Investment Perspective

Don't Treat Your First Home As An Investment

Think of your first home more as a place to live and less as an investment. Choose a home that fits your current needs and financial situation rather than focusing solely on potential future gains.

11. Community Fit

Don't Skip The Neighborhood Tour

Spend time in the neighborhoods you’re considering to see if they truly fit your lifestyle. Visit at different times of the day and week to get a comprehensive understanding of what it’s like to live there.

12. Open House Strategy

Don't Overshare at the Open House

Keep personal details to yourself during open houses to avoid weakening your position during negotiations. Focus on gathering information rather than giving it.

13. Importance of Inspection

Don't Skip The Home Inspection

Always invest in a professional home inspection. This can reveal necessary repairs and potential issues that could cost you in the long run.

14. USDA Opportunities

Don't Forget To Check For USDA-Eligible Homes

For rural areas around Spokane, check if the property is eligible for a USDA loan, which offers no-money-down financing options.

15. Emergency Preparedness

Don't Skimp On Your Cash Emergency Fund

Maintain an emergency fund that covers several months of mortgage payments. This safety net will help you manage unforeseen expenses without financial strain.

16. HOA Considerations

Don't Ignore The Rules Of The HOA

If your new home is in a community with a homeowners association, understand and agree to its rules before buying. This will ensure you can enjoy your home without unexpected restrictions or fees.

Advice for First-Time Home Buyers: Questions Readers Ask

Q1: I’m ready to start looking for houses. What do I do first?

A1: Begin with getting a mortgage pre-approved to understand your budget and showcase your seriousness as a buyer to potential sellers.

Q2: Do first-time home buyers have to make a down payment?

A2: No, several mortgage programs offer zero down payment options, complemented by government assistance programs aimed at helping first-time buyers.

Q3: How much down payment does the typical first-time buyer make?

A3: The typical first-time buyer makes a 6% down payment, according to the National Association of REALTORS®.

Find Out What You Qualify For

See how much home you can afford in Spokane. CLICK HERE for mortgage qualification. Start your home buying journey now!