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Brady Bales

Five Common Mistakes of First Time Homebuyers

Wednesday, March 20, 2013 - Article by: Brady Bales - First Option Mortgage - Message

Many first time homebuyers get so caught up in the whole titillation of buying a home and are so anxious to close on their first deal that they often make common mistakes when rushing to the close. Here are five things to avoid when shopping for your first home.

Consider All Costs

There is a lot more to owning a home than making just the mortgage payment. Consider all the costs associated with homeownership when deciding on a particular unit and which mortgage to utilize. Common costs beyond a mortgage are:
oHOA dues
oProperty maintenance
oHigher electric and water bills
oProperty tax and Insurance can increase
oCost of commuting to school and work

Shopping Before Loan Approval

Many people are so anxious to purchase their first home that they window shop before they apply for a loan. This can lead to major heartbreak and disappointment when a buyer realizes that they aren't qualified for a loan on a home out of their price range. Remember, buying a home doesn't start with the searching, it begins with mortgage pre-qualification.

Don't Go It Alone

Get professional help. Buyers need a reputable real estate agent, a good loan officer or mortgage lender, an honest home inspector and an attorney. Having independent representation ensures you are getting the best professional advice specific to your situation and needs.

Don't Use Your Entire Savings

Homeowners should maintain at least a six month reserve at all time in case of an emergency. Suze Orman suggests more. Always keep in mind that life happens!

No New Loans

Once you are approved for a loan you have 30 days to shop for additional loans without damaging your credit score. However, DO NOT shop for additional credit cards, automobiles, college loans, or any other major financial purchase until after your home loan has closed. Major purchases such as these can have a major impact on your credit worthiness.

To speak with one of our experienced mortgage lenders about refinancing your home loan, purchasing a new home, or getting rates, give me a call at 317-713-9533. We can't wait to hear from you!

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