If you are a first-time homebuyer, there are chances you might find the home buying process a little intimidating. From hiring the right agent to picking the best mortgage option to finance your new home, there are a lot of things to put in order to get the desired result. While some first-time homebuyers may have the fortune of working with the right team, many are prone to making avoidable mistakes.
Here are some common mistakes first-time homebuyers make and how to avoid them:
Not deciding how much house you can afford
When looking for a home, there is a tendency to want to broaden your search to accommodate as many possibilities as possible. But if you don’t figure out how much house you can afford, you might end up wasting your time and money visiting homes that come your way. You can avoid this by using a mortgage calculator to help you determine the price range you can afford.
Limiting yourself to just one rate quote
Mortgage interest rates vary from lender to lender, and so do fees such as closing fees and discount points. Therefore, it is best to take your time to get quotes from different lenders before making your final decision.
Making a small down payment
You don’t have to make a 20 or 30 percent down payment to buy a house. Some mortgage programs allow you to buy a home with zero down payment or for as low as 3.5. But while this may sound like a good idea, it may have a serious impact in the long run. If you can, it’s best to make a bigger down payment as doing so give you lower monthly loan repayments.
Emptying your savings
After buying a house, you might need money for things such as repair and personal upkeep. But many first-time homebuyers make the mistake of emptying their savings, making it difficult for them to proceed with the repair. The solution is to get a home inspector to inspect the home and save enough money to cover the repair costs.
Have questions about residential mortgages in Elk Grove, CA, turn to Anew Lending today. They are a team of experienced residential mortgage loan officers with a wide range of mortgage loan products to fit your needs and lifestyle. For more information, call them at (916) 655-9295.
