Today I want to talk about 7 big mistakes that usually done if you are a first time home buyer. Buying a home is an emotional and exciting thing for most of us.
Without knowing what to do, there is a lot of noise around you from your relatives and friends and there is lots of information on the Internet as well. Since you do not know which one is which. Soon you usually get confused about things. As an experienced agent, I see those mistakes a lot so I prepare this article for you. I hope it helps. Please make a comment and subscribe to my blog. I would like to hear your comments.
- Get a preapproval letter before start looking for a house. Without being financially qualified or how much you qualified, you do not know how much exactly you can afford. You will say, oh I am sure I am eligible, well you think you are eligible to buy a house up to 350k and you even like the house on that price but when you apply for a loan, lender approved you 300k. You are 50k short so either you will pay this amount in your pocket or you are not able to buy a house that you like. Also, the time that you spend and feeling sad that I am not even mentioning that. So in order to prevent this, you need to speak with the lender and know how much you qualified for. Another reason to get a pre-approval letter, when you make an offer, the seller wants to see as well.
- Shop mortgage companies. Compare each of them, tell them that you are shopping. Let them know that X company is giving you this why not you are not giving me? Discuss your loan type options, ask them which one fits financially to you best! When we bought our first house, we didn’t know we can shop and this banker gave us an FHA loan he doesn’t even ask. Even though we had money, we did close with a conventional loan.
- Do not buy anything that requires financing! When you speak with the lender, he will ask your debt to figure out debt to income ratio. The lower is better. If it is more than %50 or more, you probably should wait to make a home purchase. Don’t make any purchases on credit before buying a home. One time I have a client who open toys are us account for 20 bucks loose the deal before closing! After closing you are free to buy!
- Looking for a unicorn! Finding your Dreamhouse! I want to know that there is no perfect home in the market! But there are nice homes that fit your needs and likeable houses!
- Using the listing agent that represents you! Listing agent is representing the SELLER! Which means she will protect the seller first! It is better to find an agent who knows the area and has experienced that can help your needs and put your needs first!
- Emergency fund covering. Unless you are buying brand new house, when you move the house, things happened such as refrigerator might not work or windows needs to get fixed, squirrel might go to your addicts and do some damaged. If you don’t have enough fund to recover you might get some financial problem. Save some money after closing the house too.
- Feeling rushed. Don’t get panicked and try to buy a house in the first week of your home search. It is good to see more houses and get an idea what to look and what you like most to take your time and buy the house that you feel when you enter the house!
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