When it comes to buying real estate, first-time home buyers may think they are at a disadvantage. If you have not bought your first home, your lack of experience could end up costing you thousands or even tens of thousands of dollars. Here is a look at some of the common real estate mistakes first-time home buyers must avoid.
Failing to Research Programs for First Time Home Buyers
When calculating your finances, coming up with a down payment and closing costs can add up and deplete your bank accounts. Do not assume you have to put this purchase off simply because you cannot afford the full cost of a considerable down payment.
There are numerous home loan programs available that require a small down payment. Inquire about your options with mortgage lenders and you will find buying your first home is easier than expected. As an example, you might qualify for a loan fully guaranteed through the Department of Veterans Affairs.
Applying for Credit Before the Sale is Finalized
Opening new credit cards or obtaining a car loan before your mortgage closes can affect your transaction. Mortgage lenders base their decision on your current debt-to-income ratio, or the percentage of your income that pays monthly debts. By applying for a new loan or credit card, it can affect your credit score, causing you to getting a higher interest rate, or for the mortgage lender to decline the loan altogether.
Overpaying for a Home
First-time home buyers often make the mistake of bidding too high. Using a qualified Realtor to find your dream home and help you negotiate the price will not cost you money, but it could end up saving you thousands in the end. They will also enlist the help of an experienced appraiser who will calculate the fair market value of the home and what you should pay for it.
For more real estate tips and information, talk to the professionals at All Property Title and Escrow in Coral Springs. We’re here to help guide you through the closing process!