What are the Top 5 First-Time Homebuyer Mistakes that one can Avoid?

by NW Rochester Need Help Buying Your First Home?

If you are thinking about buying your home for the first time? If you really want to venture into the homeownership, take care of some important steps.

Few important steps for homeownership are here as follows:

To get approval for a mortgage.
Go for the right real estate agent.
Go for the home that fits your budget

Here are the top 5 mistakes that the first-time homebuyers generally do

1. Buying home is more than mortgage payments
Many first-time homebuyers have a feeling that if they are ready for the mortgage means they can readily buy the home. But the reality is different those who are ready for a mortgage does not necessarily mean they can. The property taxes and insurance have keep on going up every year.

2. To Look for a home first and then loan
Homebuying is not all about home searching. It is more like a mortgage prequalification you should be able to pay the cash payment for your first house.

3. Not Consulting a Professional
If you are new to the homebuying game. You should certainly consult a reputable real estate agent or a broker.
To start up the homebuying process that too all alone without any professional consultation, is not a good strategy. The first-time homebuyers should go for the real estate broker who is trustworthy and gives a truly independent advice.

4. Don’t Use Savings on the Down Payment
The biggest mistake that first time homebuyers do is spending their savings on the down payment and closing costs.
Many people out of excitement invest their entire money to make the down payment to avoid paying the mortgage insurance. This is not a good strategy as they may be left with no savings at all.

5. To Get New Loans Prior to Closing the Deal
If you have prequalified for a loan and you have found the house you want. The contract is closed and duly signed then don’t celebrate by financing any other big purchase. Buyers who have got the loan preapproval versus those who are eligible for loan pre-qualification are often able to close sooner.

It is a best approach for the first-time homebuyers to explore all the options. For the best home loan for first time buyers they should get on their feet financially, so that they can avail the benefits from borrower-friendly loan features which can be easily approved and get down payment assistance. Do survey of the first-time homebuyer tax credits also to maximize the savings.