Are you planning to settle down? Or are you a working professional who wants to invest in a new property? Certainly, you’ll be excited about being a first-time buyer. Becoming the owner of a house is a very common goal. First-time home buyers can often commit buying blunders, but these can be easily avoided with a little research and planning!
Here are the top mistakes that need to be avoided when purchasing a new home:
Not Hiring a Realtor
Not hiring a Realtor or Real Estate agent with experience and good standing is one of the biggest mistakes that you can make as a first time buyer. Some people urge friends, even first time home buyers, to skip the realtor and “do it yourself”.
You are about to make what is probably the biggest purchase of your life. Doing it without help isn’t the best plan; realtors exist because buying a house is complicated and non-intuitive. Research and find a professional who can provide expertise and support.
Buying a Property After Seeing it Once
There’s no rule against bidding on the first house you see. But you should always visit the property multiple times before you bid. During your first visual inspection, you could have missed details. Actually, you can’t have noticed everything. There’s no way.
The home seller or their agent may have distracted you, for good reason. To be confident that your choice is right, make sure to visit the house several times and at different times of day. Be sure to have a drive in the area at night when most residents are home to see if the neighborhood is what you’re looking for.
Shopping For A House Before A Mortgage
Home buying does not begin with home searching. It begins with a mortgage prequalification unless you’re lucky enough to have enough money to pay cash for your first house. You get pre-approved, and then you find a home. That way, you’ll make a financial decision versus an emotional decision. Your most important contact is a quality Mortgage Loan Officer like Karen Douglas.
Not Applying For First-Time Home Buyer Programs
There are lots of loan programs out there for first-time buyers, from federal down to local levels. Many people don’t know to look for them, though. Veterans should absolutely look at the VA program, while everyone else should look at the HUD website to see if any loan or grant programs apply to them. Some municipalities have programs to develop certain areas. The assistance offered can range from help with down payments and closing costs to discounted properties in certain areas.
Ignoring VA, USDA And FHA Loan Programs
Money issues often stand in the way of homeownership. A survey found that 80 percent of millennial renters want to buy a home, but most say they can’t afford it.
What you may not realize is that many first-time homebuyer programs offer financial help, event grants, and you may be eligible for various types of assistance.
Here are three first-time homebuyer programs and grants designed to help you land a great mortgage and get a place of your own.
VA (Veteran’s Administration) Loans
The U.S. Department of Veterans Affairs (VA) helps active-duty military members, veterans, and surviving spouses buy homes.
The VA guarantees part of the loan, making it possible for lenders to offer some special features. VA loans come with competitive interest rates and require no down payment. You are not required to pay for private mortgage insurance (PMI), and a minimum credit score is not needed for eligibility. If it’s difficult to make payments on the mortgage, the VA can negotiate with the lender on your behalf.
USDA (United States Department Of Agriculture) Loans
If you don’t mind living in an area considered rural, you can get a home loan using the Department of Agriculture program. USDA loans help those with low and moderate incomes buy homes in rural areas.
You won’t need a down payment to participate, although you need to meet certain income requirements.
FHA (Federal Housing Administration) Loans
The Federal Housing Administration doesn’t make loans, they insure loans made by commercial lenders to protect lenders if borrowers default on loan payments. FHA insured loans are available to all qualified buyers, and they can be attractive to first-time home buyers because the qualifications are easier.
In Conclusion, buying your first home can definitely seem overwhelming and stressful at times. But if you go into the process having already done your homework, you can protect yourself from all the big mistakes and shop with confidence. Begin the process with proper guidance, contact the Mortgage Genie today.