Mistake First-Time Buyers Make?

Failing to find the right real estate agent, applying for a mortgage before your financial house is in order, missing out on the low down payment options available to you, or being unwilling to compromise on location or features? these are just some of the errors that can make buying a first home a miserable experience.

But the worst mistake first-timers make is overpaying for a home. This can keep hurting you for years after closing.

For prospective buyers without access to some of these numbers, here’s another way to come up with a good estimate. Multiply your household’s annual gross income by 2.5 to get a rough idea of the price range where you should start. For example, if you make $74,000 a year and your spouse makes $50,500, you should be in the market for a $280k-$300k home.

Sticking to a budget in today’s housing markets can be hard and the pressure to raise the bar is hard to resist. Buyers should never forget that they may be living with the home buying decisions they make today for decades to come.