If you are purchasing you need to know these FINANCIAL TIDBITS:
Whether you are a first-time home-buyer or not, purchasing a home is going to be one of your (if not, THE) largest financial decisions of your life. Try to avoid these 10 very common financial mistakes so that your home-buying process is as smooth as possible:
1. apply for a mortgage pre-approval letter before going out to look for homes. Most sellers will not accept an offer without a verifiable pre-approval letter from a reputable mortgage company, 2. bank or broker.
2. comparison shop for your mortgage; there is a variety of interest rates, fees, points, and grants that you need to be aware of so you can select the best type of mortgage that works for you.
3. do not buy more house than you can afford! You do not have to purchase up to your maximum dollar amount. Figure out what your monthly payments will be and what you're comfortable with.
4. do not drain your savings!! Emergencies happen and cash is still king!
5. do not overextend your credit; your credit scores will affect your interest rate!
6. 20% down payments are no longer necessary for conventional loans! Ask your mortgage rep about the different plans they offer!
7. there are other mortgage types available depending on your circumstances: FHA, VA, & USDA loans are common!
8. do not forget that owning a home costs money on a regular basis! There's maintenance, property taxes, homeowners insurance, utilities, landscaping, and updating that you need to keep track of.
9. if you're going to get a monetary gift from family to buy, make sure you have access to the cash when you need it !
10. do not forget to negotiate with the seller or even your agent for price, settlement date, rebates, warranties and repairs.
One of the most important things to have on your side when buying a home is knowledge and information! Hiring a great buyer agent is invaluable! Call Cleo for a buyer consultation today! 443-604-7721