Avoiding these 3 common buyer’s mistakes gives you a huge advantage!
Buying a home is exciting… and terrifying at the same time. First time homebuyers often make the same mistakes – and those mistakes can cost you in big ways. Here, we will discuss the top three most common (and most costly) mistakes of first time homebuyers – and how to avoid making them yourself.
- Going house hunting before you applying for a mortgage.
It’s only natural to start window shopping for the home of your dreams… but if you start shopping before you apply for a mortgage, you are setting yourself up for a potentially huge disappointment. Of course you want that 5 bedroom, 4 bath home on the corner lot. Yes, it does have a large front yard, three car garage and a pool with a jacuzzi in back yard. But unless you either won the lottery or Daddy’s buying it for you – you might be shocked to discover that you only qualify for the double-wide trailer on the other side of town. To prevent your spouse from shedding crocodile tears, don’t go house-hunting before applying for the loan.Far better to get pre-qualified with a mortgage professional FIRST! That way, you will know exactly how much money the bank says that you can afford, which then allows you to shop for homes within your budget. Plus, in this hot real estate market, being pre-qualified may just make the difference between getting the home you want, and being boxed out by another buyer who’s prepared to make the transaction immediately.
- http://shineonfit.com/calculate-vitamin-c-into-mg.html Being careless with your credit.
You’re going to buy a home. You’ve got a closing date 30 days from today. Everything seems to be going your way. So you decide to celebrate by going on vacation and upon your return you buy your significant other a brand new car. Imagine your surprise when you get a call from your mortgage lender who says that you are no longer qualified to purchase the house – because you went and spent up a storm on your credit report.Banks exist in part to loan you money. But an old adage is that they will only lend it to you if you can prove that you don’t need it. One of the biggest mistakes you can make is to put ANYTHING of significant value on credit in the weeks and months leading up to your purchase of a home. It’s much better to put off all non-essential purchases until and AFTER the ink has dried on your mortgage documentation.
- buy Lyrica in dubai Buying more house than you can reasonably afford.
It’s very easy to get emotional about home buying, and it’s normal to want as much house as you can afford. However, if you find yourself justifying the stretching of your budget, you’re setting yourself up for a very serious fall.Most financial experts agree that you should spend no more than 36% of your total gross income on total debt. That includes all credit card debt, vehicle loans, student loans and insurance (medical, home and P&C). Keep your expectations reasonable, and your mortgage payments within reach, and you’ll be in great shape over the course of a 30 year loan.