In this complicated process, there is plenty of room for first-time homebuyers to make a mistake. Having an experienced Realtor on your side can make or break your first transaction. Find out the most common mistakes homebuyers make and how to avoid them.
Most Common Mistakes That Homebuyers Need to Avoid
Looking for a home without applying for a mortgage
Many first-time buyers often get too excited that they neglect to get a mortgage beforehand. Failing to get your loan pre-approved could mean losing your real estate property.
Before you even consider looking for a house, it’s advisable to get an underwritten pre-approval first. Doing so sends a message to sellers that you’re serious about buying a home. It also proves that you have the right credit score and finances to get a loan and make things work.
Considering only one lender
There are instances where first-time buyers get a mortgage from the first lender or financial institution they talk to; that is a huge mistake. Keep in mind that the more you look around, the better basis for comparison you get. We advise you to seek various rates, loan terms, and lender fees from three different lenders. Doing so will make sure that you’ll be getting an excellent deal at the lowest rate.
Choosing to pay a minimal down payment
Some loan programs don’t need loan applicants to pay a 20% down payment to buy a property. Some would only ask you to pay a 3.5% down payment or none at all. Although it seems like a good idea, opting for the lowest down payment option can be problematic. That’s because you’ll have a higher monthly mortgage payment if you choose to pay less than the regular down payment.
To avoid this mistake, you need to figure out what option will give you the best savings in the future. Remember that a more significant down payment lets you apply for a smaller mortgage. Yet, taking the time to beef up your savings could also mean that the home prices and mortgage rates will rise too.
Buying a house is a significant financial decision. Yet, it doesn’t mean that the entire process has to be complicated. The Nickley Group can help you buy a home so you won’t have to worry about committing these mistakes. Please send us a message now so we can help you make your dream home a reality.
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