First time home buyers may be new to the real estate market. These are some common mistakes that first time home buyers should avoid.

Buying Too Much Home

When a person is looking to purchase a home they should spend no more than 30 percent of their monthly income on housing. A person can use an online mortgage calculator to help them find this amount. If they spend more than this number they may struggle to make the payments.

Not Shopping Around

A person should get a quote from several different mortgage lenders. This way they can find the one with the best terms and the lowest interest rate. This can help them save thousands of dollars throughout the loan.

Home Searching Before Getting Pre Approved

Many people may begin to look for their homes before they get a pre approval letter from a mortgage. The pre approval will give them an idea of how much money they will be approved for. Some real estate agents will not show a home unless a person has a pre approval letter. This way they know they are serious about making a purchase. This is essential when a person is looking to purchase a home.

Down Payment

While most people think they will need 20 percent of the asking price for a home as a down payment the amount they may put down can be much less. A person may be able to put as little as 3 percent home. They do not have to wait until they have 20 percent of the asking price to begin to look for a home.

These are some common mistakes made by first time home buyers. The home buyer should avoid making these mistakes so they can get a home they will love and can afford.