First time homebuyer? Here are some pit falls to avoid:
Shopping
without a home loan
Most experienced real estate agents will ask you to get pre-approved with a
mortgage lender before you go shopping. Why? This saves them time and proves
you are serious, narrows the search criteria and prevents you falling in love
with a home you can’t afford. Being pre-approved also puts you in a stronger
bargaining position. But… keep the amount you are pre-approved for on the down
low. Bargaining tip: You don’t want the seller to know what you can actually
afford; you want to tell them how more you are willing to afford.
Ignoring
first-time buyer programs Ignoring these opportunities can cost you a lot of money. What are you
potentially passing up? Down payment assistance, Mortgage Credit Certificates, Revitalization
programs and HUD homes.
Only
considering ‘30-year fixed’ rate mortgages Conservative buyers believe traditional 30-year
fixed rate mortgages are the only home loans to consider. However, especially
for first-timers, hybrid adjustable-rate mortgages that provide a fixed rate
for a specified number of years may be better.
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