​First-Time Home Buyer Mistakes

By:
Staff Reporter
May. 20, 2014

First-Time Home Buyer Mistakes – Searching for the right home can be stressful enough, but mistakes do happen all the time, typically a first-time buyer. It can often crash hopes and dreams by making a wrong turn during the decision process. In fact, it is one of the top reasons a deal will fail.

Ever since the so-called Great Recession of 2008, banks have been tightening their lending policies, and it’s getting tougher. However, these measures were needed a long time ago to protect consumers and banks. The system has failed many people, resulting in foreclosures and bad credit.

Getting approved for a mortgage, finding the right agent, searching for the perfect home and staying within a budget are some of the challenges buyers must face before they become homeowners.

Many first-time homebuyers decide to buy when they feel ready for a mortgage. But just because they can afford the mortgage payments doesn’t mean they can afford to own a home. For example, there are other costs involved such as insurance, taxes, homeowners association dues, maintenance, and higher electric and water bills.

Before you shop for a home, consider your credit and mortgage prequalification. It is a rare to find a homeowner that is willing to finance you, especially one with no money down. They are selling the property because they want the money.

You can save yourself a lot of time by getting a prequalification. You might have to spend the next 6 to 12 months fixing your credit. This is the best thing you can do because you will save a lot of money on lower interest when you have good credit. The interest will determine your monthly payment.

New to the homebuying game? You’ll need a reputable real estate agent, a good loan officer or broker, and perhaps a lawyer. Don’t try to do this alone.

Venturing into this process alone, without professional help, is never a good idea, as first-time buyers should not try to deal directly with the listing agent. If you hire an agent without a referral from friends or family, ask the agent to provide references from previous buyers. The same goes for loan officers or mortgage brokers.

Share this article
Comments
Trending on NewsOXY
NewsOXY Editor's Picks
Popular Reads By NewsOXY Readers
Follow NewsOXY