6 First-Time Homebuyer Mistakes And How To Avoid Them - Make Money Online

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6 First-Time Homebuyer Mistakes And How To Avoid Them

Are you buying a home for the very first time? Then you'll soon achieve a part of the American Dream! As a first-time home buyer, it's essential to note that there are lots of mistakes to avoid. Check out the following and make sure to take down some notes!

Assuming You Can't Qualify for a Home Loan

Since not all have enough cash to pay for a house in full and can pay for the additional expenses without going house poor, many choose to apply for a mortgage. However, a lot of renting families believe that their low to moderate income won't be enough to qualify for a home loan. 

The reason is that the usually down payment required before was 20% of the purchase price. But thanks to available home loan options, one can now achieve home ownership even if you can only afford a small down payment.

Not Understanding the Full Responsibilities, Benefits, and Costs of a Homeowner

If you've been renting, then the only obligations you have includes paying your monthly rent, water, electricity, cable, and internet bills. For homeowners, you'll need to pay precious cash to pay for the costs paid regularly by landlords like homeowner's insurance, garbage fees, repair and maintenance costs, lawn care, cleaning costs, pest control, property taxes, etc. Owning a house also has its perks. Not only will it provide you a rook over your head for as long as you choose to stay on that house, but it also helps build wealth over time. Make sure to take into consideration the benefits, cost, and responsibilities of owning a home before buying one.

House Hunting Before Reviewing Your Finances

Many first-time homeowners tend to look for houses for sale before even checking how much they can afford. One should consider your savings, monthly income and debts. This is where Debt-To-Income Ratio comes into the picture. This will tell you how much you can afford and how much mortgage you can qualify for.

Not Taking Advantage of Grants and Benefits for First-time Homebuyers

As a first-time homebuyer, you can apply for different home loans such as FHA loans, VA loans, USDA loans, Fannie Mae/Freddie Mac and Good Neighbor Next Door Program in Texas. There are also programs you can avail to help lower your down payment, closing fees, and tax credits. Make sure to do research and ask your mortgage broker and lender for such grants and benefits.

Thinking a Mortgage Broker is just Another Expense

Many first-time homeowners fail to understand that mortgage brokers can get you more savings. Although they are not the one who can offer home loans, they are experts when it comes to pre-qualifying and educating you about the different mortgage options. Since their focus is on you, you can be sure that they intend to give you the best home buying experience by finding the best deals offered by a good Mortgage Lender San Antonio to meet your situation.

Talking to a Single Mortgage Broker and Lender

Another mistake to avoid is not shopping for brokers and lenders. There are different types of lenders, not just banks and credit unions. You’ll also need to find a competent mortgage broker to help you find the best deals from different lenders.

Make sure to ask for recommendations from your real estate agent and people whom you knew that recently made a home purchase. Also, checking for online reviews and feedbacks are an excellent way to find a good one. 

Don’t hesitate to ask questions to your mortgage lender and broker to make the best of your hunt.
6 First-Time Homebuyer Mistakes And How To Avoid Them 6 First-Time Homebuyer Mistakes And How To Avoid Them Reviewed by Jhon on 2:48 AM Rating: 5