Simplifying the First Time Mortgage Process by Avoiding Common Mistakes

Newcomers to the market are often met with a lot of confusion.  Getting a first time mortgage is a long and often trying process.  Fortunately, our loan officers can make the process of buying a first home mortgage much easier to understand and will help you avoid some common mistakes.

Here are a few tips to consider when buying a home:

Buyers shouldn’t assume that the only expense to consider is the mortgage payment.  There are many other costs to consider before making that leap.  Owning a home comes with additional expenses that are often overlooked before purchasing.  Buyers have to think about taxes, dues for homeowner associations, a higher heating/cooling bill, maintenance/repair fees and homeowner’s insurance. These are just a few things that should be factored into the overall cost prior to signing the paperwork.

The first step to buying a dream home isn’t finding the perfect home to meet your needs – it’s finding a mortgage that fits your budget.  The last thing a potential buyer needs is to find a perfect home only to discover later that they’re not qualified to purchase it.  Finding a property first is often more fun than muddling through the mortgage process, but it’s a backwards approach that can ultimately be disappointing.  Potential owners should work towards getting pre-qualified before hunting for real estate.

One of the biggest mistakes that new homeowners make is spending their entire savings on closing costs and a down payment, leaving nothing in the bank for unforeseen costs.  Everyone should have access to savings in case of emergency, and depleting an entire savings account to pay for the home can lead to crisis situations down the road.

Buying a home comes with a lot of excitement, too.  New homeowners in the closing process often go on a spending spree to fill their new home with new furniture.  Experts advise to hold off on the furniture buying process, especially if buying with credit.  Dips in a credit score can potentially blow the entire deal, so wait until closing is over to find the perfect furniture set for your new home.

Finding a reputable team to work with when purchasing a new home is important.  You can contact us and let our team work with you to find you the perfect loan for your new home and make sure the often overwhelming process goes as smoothly as possible.