Don’t Make These Mistakes When Buying a Home

By
Mortgage and Lending with HomeTown Lenders

Mistake #1:Don't make a mistake

Not knowing how much you can afford before you make an offer.

The easiest way to avoid this mistake is to get pre-approved for a mortgage by a Lender so you know in advance exactly how much you can afford.

 

Most pre-approvals are free and it will give you a basis to make a more informed purchasing decision when you find the house you like.

 

Mistake #2:

Not realizing that the wrong mortgage can cost you thousands of dollars in needless interest and taxes.

 

Check with your accountant before you make your final decision on which mortgage you’re going to choose.

 

Your CPA can tell you what the long-term effects will be on your income, your taxes, and the equity you build in your home over time.

 

Most people aren't aware that with a standard 30-year mortgage they’ll be paying two-and-a-half times the amount of the mortgage in payments.

 

With some advance planning and a simple strategy, they can cut the amount of interest they pay dramatically and own their homes sooner.

 

Mistake #3:

Not realizing in advance whom the real estate consultant represents.

 

Most people think that the agent they’re working with is working for them.

 

But unless they’re working as your buyer representative, they represent the seller.  There are different types of agency relationships you can have with a Realtor, so make sure you’re clear on your options.

 

Mistake #4:

Not discovering hidden defects before they buy a home.

 

One of the most expensive mistakes is also one of the easiest to avoid, by having a professional pre-purchase home inspection.  Don't get stuck with a money pit.

 

The cost of a professional home inspection is usually a few hundred dollars, but the peace of mind it can give you and the expense you can avoid are worth thousands of dollars.

 

Mistake #5:
Not knowing how much your credit can affect your ability to buy or refinance a home.

 

Before you buy a home, many of the clouds on your credit history can be cleared up or even eliminated. I can help you review and prepare your credit file in advance.

 

Let's talk about it - (615) 895-4265

 

Comments (2)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Great information for buyers.  Thanks for sharing the blog.  Best Regards and Merry Christmas

Dec 20, 2011 02:41 AM
Hal Tennant
HomeTown Lenders - Murfreesboro, TN
Get a Zero Down Mortgage - How to buy a home with no money down

Thanks Edward and Celia,

It seems like buyers like to put the horse before the cart. My mission is to educate.

Hope your Christmas is a Merry one.

Dec 21, 2011 02:34 AM