Mistakes All First-Time Home Buyers Should Avoid
Buying your very own home is probably everyone else’s dream too, but a lot of people commit
mistakes during the purchasing process. Buying a home is not a cheap process, the down
payment, home inspection, home appraisals and many more. All of these can definitely eat up
your savings and for first time home buyer, mistakes are inevitable. But the good news is, we
have tips for you to avoid the common home buying mistakes.
Choosing a risky loan- it is best to talk to your mortgage broker or to your loan officer
to get all the necessary information on the different types of loan products. There tons of
mortgage loans that will fit perfectly for every person and for very situation. But what’s
important is that you know the process and that you educate yourself about this to avoid
choosing a costly loan that won’t be of much help. Buyers often choose an adjustable
rate mortgage to get a lower interest rate but they don’t realize that the mortgage
payment can actually increase in the long run. Others opt to get a 15 year mortgage then
find out that they can’t shift the higher payments in relation with their income.
Overspending on your new house- lenders determine the person’s ability to buy a
house depending on their credit report and what their tax documentation has in it. Their
credit scores will also play a big role for this. But some lenders approve a person’s
application even though the lender knows that they can’t afford it which is somewhat a
trap for you to fall into. Instead of being all happy about this, be smart and choose a loan
that you can surely pay off. Splurging and spending all your money for a 5 bedroom
house even though there’s just the two of you may be satisfying but wait till your bills
come rolling in. a bigger house means more to spend and more to maintain which may
put off the balance of your budget.
Skip the home inspection- first time buyers usually think that they can skip this part.
But doing so can be a very risky thing because serious problems can occur in the future
such as, faulty electrical wirings, problems with the plumbing etc. if these don’t get
attention as early as possible, these may do more damage in the long run and may cost
you even more.
Take a look around- take your time in looking at houses and talk with different lenders
to get the best interest rates out in the market. Compare everything to get the best
option; this will include your mortgage rate, closing costs, down payments, mortgage
protection insurance and the possible repayment penalty.
Follow these tips in order to get the best deals for your soon-to-be house. Take your time in
looking for the one to avoid the usually mistakes that first time buyers commit.
You are entitled to get your free credit report annually and keep a track on your credit history.
Keep a regular check on your credit report with credit score free throughout the year to keep
your score high.