The 5 Common Mistakes Made by First-Time Home Buyers when shopping for a home Middletown NJ.
You can avoid the making the common mistake as first-time home buyer that others made when they first bought a house if you follow an expert’s advice. Before you complete your dream of being a homeowner, there are important steps you must NOT SKIP. The best professional to consult before you start shopping for a home is a mortgage loan officer to help you find what can afford with loan options. Once you find the right person to work with, avoid the following five common mistakes made by first-time home buyers.
- Cost of owning a home
First-time buyers consider buying a home when they think they are set with the mortgage payments. Just because you can afford the monthly payments doesn’t mean you can afford all the cost that come with a house. Ownership entails more than just paying the interest and monthly every month. There’s other cost that will continue adding up if you don’t plan for well in advance. You will need to pay for then utilities, gas, oil, lawn maintenance, taxes, insurance, etc. To avoid falling into the mistake seek advice of seasoned investors or current fellow homeowners. A mortgage consultant can clarify the costs of insurance and property taxes.
- Submitting a offer before a pre-approval.
Before you get excited about a house in a preferred location, get pre-approved with a mortgage consultant first to see if you can afford the home. Shopping for a home sounds like a fun activity; wait until you analyzed your financial position with a Bank/Lender, that’s when you realize that the mortgage drive is not a walk in the park. And that is where most first-time home buyers go wrong learning that they can’t afford the first house they spotted. To escape this mistake, find out first the amount of home loan you can afford. Then start searching for homes in that price range. Only then can you make an offer on a home. That is why a pre-approval is so significant when looking for a home. You should start with getting pre-approved before searching for a house.
- Ignoring the location & neighborhood.
When shopping for a house, the most eye-catching qualities of your ideal home. Don’t settle for the first interesting qualities and forget the most important ones like location to your work. Another thing you must not disregard is the neighborhood drawbacks. Can you put up with a noisy road behind your home or a school next door? You might also think that commuting is not an issue but after a few months of spending thousands on fuel and traffic, you will regret buying a home. Before making an offer, visit the house and check the downsides of the location.
- Avoiding professional advice.
Look for independent mortgage professional who will not give an endorsement for his lender, but will help you with different choices. Avoid working with the seller real estate agent, they will sugar-coat the deal. You need someone who will favor your interest. Without professional help, you will be confused by real estate agents as well as promoted mortgage deals. As a rule, never buy a house on your own for the first time. Ask your friends and family for referrals. And when you find a good agent, ask for references from previous home buyers. Do the same thing with bank or mortgage professional.
- Applying for other credit/loan before losing the mortgage deal
Opening new credit card accounts or taking auto loans before your deal is closed is a significant mistake. If you have poor credit habits, you might want to put away your credit card and stop buy, that will increase your credit qualifications.
You must wait until your loan is done to charge huge sums on your credit accounts. The reason you should watch out how you spend is that the mortgage lender takes into consideration your credit score and any new debt. You don’t want to reduce your credit score or add to your current debt, this may disqualify for the mortgage.
When buying your first home, it is normal not to have an inkling of where to begin. First time buyers are disposed to mistakes but you don’t have to follow suit. You can find your best mortgage deal today with the help of a mortgage expert. Last but not the least; keep all sorts of options available when you are looking for a home loan.
Hope this helps.
The 5 Common Mistakes Made by First-Time Home Buyers when shopping for a home by Tony Busanich a loan officer with TD Bank, a portfolio lender from Maine to Florida. You can trust TD Bank to deliver a superior mortgage experience. Whether you’re purchasing or refinancing, we provide straightforward, easy-to-understand products and advice, allowing you to make smart borrowing decisions that meet your needs today and tomorrow. My web site at www.tdbank.com/tonybusanich Please contact me at 732-306-2231 or by email at anthony.busanich@td.com .
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