Saturday, February 4, 2012

Five Common Mistakes First Time Home Buyers Make

1. There is more to owning a home than making the mortgage payment. Consider all the costs associated with owning a home when deciding on a mortgage.

a. HOA dues

b. Maintenance

c. Higher electric and water bills

d. Property tax and Insurance can increase

2. Looking for a home first and applying for a Loan after they found the home of their dreams.

~ Buying a home doesn’t start with the searching, it begins with mortgage pre-qualification.

3. Get Professional Help.

~ Buyers need a reputable Real Estate Agent, a good Loan Officer, an honest Home Inspector and Attorney. Having independent representation ensures you are getting the best professional advice specific to your situation and needs.

4. Don’t liquidate your entire savings on the Down Payment.

~ Home Owners should maintain a 6 month reserve at all time in case of an emergency. Life happens!

5. No Shopping and opening new credit until the loan is closed!

~ Any new loans showing up on credit can jeopardize loan approval.