5 First-Time Homebuyer Mistakes!

When thinking of purchasing your first home, the primary place to start is contacting a lender to determine how much you can afford. The lender will run your credit report and go through your monthly bills, this is very, very important as most first-time homebuyers are often afraid to get the prequalification, you fear the lender may tell you that you don’t qualify for a mortgage as high as you may want. However this way you’ll make a financial decision rather than an emotional one.



Here are the 4 other things to consider before you start shopping for your mortgage:



If you are thinking of changing your job in a year or two, or may have to move for your job, think twice, ideally picture yourself living in your new home for at least 5 – 7 years.



Make sure you have enough cash/savings to cover closing costs associated with obtaining a new home, including property insurance, taxes, homeowners association dues, any maintenance required immediately, and your new electric and water bills (all usually higher if you are currently renting).



Chose a reliable and reputable Realtor, if you are referred from a friend or family member, ask the agent for references from previous buyers, the same goes for loan officers or mortgage brokers. Often dealing with the actual listing agent, and not your own agent, can pose difficulties as the agents obligations to you may be affected by his/her obligations to the seller also.



Once you have obtained your pre-approval, and taken into account the above, please don’t go our and charge your credit card with major purchases, computers, cars, etc., as your credit score WILL BE RUN AGAIN prior to your loan funding and you definitely don’t want that score to drop even one point.



GOOD LUCK, this IS the time to buy, with interest rates at or BELOW 4%, mortgages are more affordable than ever, and if you are renting, stop paying your Landords’ mortgage and start paying your own!


Jane Loveday
DRE Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
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