First Time home buyers are so excited, that sometimes mistakes are made. We have come up with a Top 5 List to help you to identify and avoid these mistakes.
Mistakes can be costly. Here are your:
1. Not looking for first-time home buyer programs
So many put off buying a home in order to save up the 20% down that they have been told they need. But there are so many low-down-payment loan programs out there, including state programs that offer down payment assistance and competitive mortgage rates for first-time home buyers.
Click Here to Learn about first-time home buyer resources in your state
How to avoid this mistake: A great Real Estate Agency will know about many of the programs available to you. If not, ask a mortgage lender about your first-time home buyer options and look for programs in your state.
Click Here Find a first-time home buyer program that is perfect for you
2. Not figuring out how much house you can afford
Your time is precious. Looking at homes out of your price range can be a waste of your time.
As a first-time home buyer, you need to figure out what mortgage payment can you handle comfortably. It is best to be conservative to help accommodate other costs that may change with owning a home.
How to avoid this mistake: A great Real Estate Agent can help you to calculate what you can afford. Using a mortgage affordability calculator can also help you determine a range that is workable for you.
Click here To Calculate how much house you can afford?
3. Getting just one rate quote
Buying a home is a major purchase. And like with any other major purchase, you should shop around to find the best deals. It pays to compare Mortgage rate offers. Mortgage interest rates vary from lender to lender, and so do fees such as closing costs and discount points.
According to the Consumer Financial Protection Bureau, almost half of borrowers don’t shop for a loan.
Click Here For 5 tips for finding the best mortgage lenders
How to avoid this mistake: Do your research. Apply with multiple mortgage lenders. A typical borrower could save hundreds of dollars in interest just in the first year by comparing five lenders,
4. Shopping for a house before a mortgage/Not checking your Credit report
It’s exciting to look for your first home. But not knowing what you can afford or having a mark against you on your credit report can make all your searching a waste. You then will be disappointed you were looking at homes not in your price range, especially if you find a home you love. It is also very important to check your credit report and correct any errors that negatively affect your credit.
Mortgage lenders will scrutinize your credit reports when deciding whether to approve a loan and to determine your interest rate. If your credit report contains errors, you might get quoted a higher interest rate than deserve.
How to avoid this mistake: Before your start searching for your first home, talk to a mortgage professional about getting pre-qualified or even preapproved for a home loan.They will review your income and expenses, and it can make your bid more competitive because you’ll be able to show sellers that you can back up your offer.Review you credit report and correct any errors. This will help you avoid any last minute surprises when applying for a loan.
5. Underestimating homeownership and repairs/renovation costs
Monthly bills will change after you buy your first home. Utilities, repairs, renovations etc. must be calculated in advance. None of these costs are included in your mortgage payment.
It can come as a shock to see higher utility bills and repair bills that were never calculated into your new monthly expenses.
Also, First-time home buyers are frequently surprised by high repair and renovation costs. It is important to get many different quotes for all repairs and renovations. It is also important to realize that doing home renovations and repairs yourself, if unqualified, can lead to disaster.
How to avoid this mistake: First, do your research. Make a record of all utilities you will need and then the estimated monthly bills. You can ask your Agent to request the utility bills for the previous year from the seller to get a better idea of what to expect. A good Real Estate Agent can tell you if there are any neighborhood fees or taxes and also help you calculate and insurance costs.
As for repairs and renovations, it is important to get more than one estimate for expensive repairs. A good real estate agent will be able to give you referrals to qualified contractors. You can also research contractors online with good reviews.
Giraldo Real Estate is here to help First Time Home Buyers every step of the way. At Giraldo Real Estate, we believe:
Everything starts with an idea that solves a problem!
We invite you to reach out to us today to help with any of your Real Estate needs.