First-time home buyers often make huge mistakes that could cost them hundreds or even thousands of dollars, either now or in the future. By taking the time to do your homework, you can avoid making these top five mistakes that first-time home buyers commonly make.
- Not Being Realistic
- Choosing the Wrong Realtor
- Choosing Your House Too Soon
- Choosing To NOT Get A Home Inspection
- Understand the Contract
Mistake #1 – Not Being Realistic
The top mistake for a first-time home buyer is not being realistic about the cost of not only the home but what it really entails for keeping the home running smoothly. Going from being a renter to a homeowner means that now you are the one responsible if something needs to be replaced. If you are not financially prepared for this, it could lead to real hardship for you and your family. You must also figure out the cost of keeping your property in top shape. If you do not do this, the property will not appreciate in value, and in the long run, this can cost you thousands of dollars when you decide to sell. Buying above your means will only end up making you “house poor.” You want to work to enjoy your house, not kill yourself working to hold on to it.
Mistake #2 – Choosing the wrong realtor
Ask your friends and family if they can suggest anyone whom they have done business with, or they might know on a personal level. When looking for a realtor, ask for someone who specializes in first-time home buyers. These Realtors are usually more patient, not as pushy, and can help walk you through every step in the home buying process.
Mistake #3 – Choosing your house too soon
Being a first-time home buyer, you can easily fall in love with the first home you visit. Don’t let it happen to you. Make sure you shop around and get a good idea of things you want and can afford. Homes go on and come off the market daily. So if your dream home isn’t in that day’s round of showings, don’t just settle for the best available. Be patient for the right house to come along. It’s worth the extra days of searching to avoid living in a home you aren’t entirely happy with for years to come.
Mistake #4 – misUnderstanding the contract
Everything should be spelled out with no hidden charges or stipulations. If you don’t understand or agree with a point listed in the contract, ask questions. Your Realtor is there as your representative and advisor with your best interest in mind.
Myth #5 – Choosing to NOT get a home inspection
Spending the extra $200 – $400 or so on the home inspection can save hundreds and even thousands of dollars on expenses you may not have even known existed before the inspection. When choosing a home inspector, make sure to check references. Doing so can mean the difference between a good home inspection or not. Don’t be fooled by what you can visually see. There may be something wrong with the house that the untrained eye doesn’t see, and a home inspection will tell you what lies below the surface.
Choosing your house wisely & being prepared is partnered with choosing your mortgage wisely. We are committed to your success and lifelong financial freedom. As The Mortgage Experts, we strive to raise the bar in providing excellent services to our clients and believe in sharing our knowledge to benefit all. Please feel free to pass this information along to family, friends, and colleagues.
"Loans are what we do, not who we are."- CEO, Steve Jacobson
“Loans are what we do, not who we are.”
– CEO, Steve Jacobson
This may vary depending upon the specific type of mortgage you are applying for, as different agencies will need to be involved in the process. Typically the process plays out in a month or less, though some will go quicker. It is not uncommon to have the mortgage application processed within 10 days. It is critical that you get the application entirely completed, so that you can avoid any delays along the way.
The main thing that can delay the approval of a loan is failing to properly and completely fill out the applications. It is also important that you be completely honest on the applications, as any discrepancies may cause delays. In addition, changing jobs, having a change in your salary, changing your marital status or taking on additional debt can delay the approval of a loan.
Closing costs include items such as taxes, title fees and hazard insurance. Sometimes what is included in closing costs varies, and it can be impacted by the negotiation process on the sale price of the home, as the homeowners may or may not cover certain closing costs. You’ll want to have some money set aside to cover your closing costs.
Prepaids are items that you as the homebuyer pay at closing. This is a payment before the actual due date. These may be necessary depending upon the details of the closing. They include taxes, hazard insurance and other various assessments.
After you close, you’ll receive a letter that includes all of the dates and information that you need. If you want further details while you are closing, you should inquire about the specific due date of the first payment.
Lorem Ipsum proin gravida nibh vel velit auctor aliquet. Aenean sollicitudin, lorem quis bibendum auctor, nisi elit consequat ipsum, nec sagittis sem nibh id elit. Duis sed odio sit amet nibh vulputate cursus a sit amet mauris.
