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The 5 Biggest Mistakes First Time Home Buyer Make
5 Biggest Mistakes of First Time Home Buyers
It’s More Than Just a Mortgage: Many first time home buyers believe they are ready to purchase a home when they can afford a mortgage payment. However, it’s important to understand that buying a home has many other expenses as well. Homeowners insurance, taxes, Home Association Dues, water and electric bills and maintenance are important monthly expenses some first time home buyers overlook.
Shopping for a Home Before Mortgage Pre-Approval: The most important thing to do before starting your home search is to meet with a lender for pre-approval. This way, you know exactly what kind of home you can afford and what your monthly payments will potentially look like. Shopping for homes before pre-approval can not only waste your time, but can set you up for disappointment.
Not Getting Professional Help: Getting a trusted lender and real estate agent to work with you in finding the perfect home is crucial. It’s important to work with someone who can guide you and give you trusted advice while holding your confidences. Calling different agents and lenders about homes you are interested in holds you back from finding someone who can really advocate for you vs. advocating for the seller of the transaction.
Using all your Savings for a Down Payment: I know it’s tempting to put more on a down payment for a better rate. But, is it really the smartest thing to do? Many people feel that paying a mortgage insurance is worth having a nest egg in the bank.
Getting New Loans Before the Deal is Done: Many First Home Buyers don’t realize that they shouldn’t have their credit pulled, make any large purchases, or apply for another loan while in the process of buying their first home. If you don’t hold off until after your closing, your original loan approval could fall apart.
Image by diamondhomes.com
Born and raised in Maryland, Laura Kate Perez is very familiar with Frederick and the surrounding counties. Laura Kate holds a Psychology degree from Towson State University, and has worked with local....
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