Buying your first home in New York is both an exciting and frightening time. It’s easy to become overwhelmed by all of the decisions that you have to make. It’s important to keep a clear head. Here are seven mistakes to avoid during the homebuying process.
Looking for a Home Before a Loan
You need to shop for a loan before shopping for a home. Getting pre-qualified or pre-approved will give you a better idea of how much you’ll be eligible for so you can find homes within that range.
Talking to Only One Lender
You should get rate quotes from a few different lenders. Comparing quotes from different lenders could lead to a savings of over $400 a year on mortgage interest.
Overlooking Government Programs
There are several government programs available that first-time homebuyers may be eligible for:
- VA loans: these are loans guaranteed by the US Department of Veteran’s Affairs for homebuyers who have served in the US military.
- FHA loans: these loans are great for homebuyers with less than perfect credit or who have little money to put down.
- USDA loans: these loans can be used to purchase homes in areas that the USDA has designated as rural.
Buying a Home Based on Your Current Needs
If you’re looking to live in the home you’re buying for the foreseeable future, you should look to the future to see where you’ll be. Your new home should be able to meet your future needs, not just your needs now.
Underestimating Fees Associated with Purchasing a Home
There are several other costs associated with buying a home that you need to take into consideration, including a structural inspection nassau county, pest inspection, loan fees, and closing costs. You need to be sure to keep all additional costs in mind so you know exactly how much you’ll be spending.
Applying for New Credit Before the Sale is Final
Your lender’s decision for your mortgage is heavily based on your credit and debt-to-income ratio. Applying for new credit or making a major purchase on your card can drop your score. This can impact your interest rate or fees, making your mortgage more expensive.
Even though the seller is asking a certain price, you may be able to talk him or her down. You may be able to ask the seller to take care of a few repairs noted in the home inspection. The seller may be willing to pay part (or even all) of the closing costs. Don’t be afraid to negotiate.
Knowing what mistakes to avoid can make the home buying process easier and allow you to find a home that you’ll love for years to come.