Three First-Time Home Buyer Mistakes to Avoid
Published: May 8, 2019
If you have dreams of buying your first home in the near future, you may be feeling eager to begin touring houses with your Realtor. In reality, there’s a lot that needs to happen before you’ll find and place an offer on your dream home. From securing financing to double-checking your budget, you won’t want to overlook any important details.
Specifically, there are a few common mistakes you’ll want to avoid as a first-time buyer.
1. Overlooking Your Credit Score
It’s always a good idea to know where you stand in terms of your credit score before you apply for any type of loan—especially one as substantial as a mortgage. Take time to order a free copy of your credit report from any of the three major bureaus (Equifax, Experian, or Transunion). From there, be sure to review your credit report thoroughly for any errors or omissions. Dispute and have these corrected before you apply for a mortgage, as your credit score will ultimately have a huge impact on your ability to get approved for a mortgage and the interest rate for which you’ll qualify.
2. Not Exploring All Your Options
Even as a first-time buyer, you may have multiple mortgage options available to you. Take time to review your options and determine which will best suit your needs, from fixed and adjustable rate mortgages, jumbo loans and more. Closing cost can be a major hurdle in purchasing a home. You’ll want to understand what costs you may need to pay with a mortgage loan. Some lenders offer a no closing costs option for a home loan but keep in mind that the interest rate you pay on a loan with this option may be higher. A no-cost option allows you to greatly reduce your closing costs and the cash you need to have when you purchase your home. When you choose a no-cost mortgage loan, you receive a credit for most of your closing costs, allowing you to close with less money up front.
3. Ignoring Your Realtor’s Advice
Your Realtor will know the local market better than anyone, so don’t make the mistake of ignoring his or her advice—especially when it comes time to make an offer on a home you love. Your Realtor will always be working with your best interests in mind, so if he or she suggests making a full-price offer in a competitive market, that’s probably going to be your best bet at securing your dream home!
Still looking for help when it comes to buying your first home? County Federal has you covered. Contact us today to find out more about our home loan options and how we can help you turn your dreams of homeownership into a reality!