Purchasing a home is stressful, no matter if you’re a first-time buyer or have experienced the mortgage process a few times before. Our mortgage and financing expert took some time to outline the common borrower pitfalls, so you can be well-prepared to navigate the process with ease. If you’re planning to buy a home, these are the top three home loan mistakes to avoid!
Don’t Make These Home Loan Mistakes During the Home-Buying Process
Not Shopping Around
Overlooking Hidden Costs
Not Understanding the Terms
Why It is Important to Shop Around for the Best Loan Offer
Though it may be tempting to take the first loan offer you receive, it’s wise to shop around. Different lenders provide offers with varying rates and terms. That means, the first one you receive isn’t always the best.
In fact, studies show that home buyers can save hundreds—and sometimes even thousands—of dollars by doing a little extra shopping. Just as you would when making any other purchase, consult with multiple lenders to understand what’s available. Then, choose the loan offer best for you.
Hidden Costs and Fees Associated with Buying a Home
First-time buyers often aren’t aware of the additional fees associated with the purchase of their home, sweet home. In addition to the expected costs, you’ll also need to consider the following fees:
Closing costs
Property taxes
Insurance
Maintenance costs
These expenses add up quickly, often costing thousands of extra dollars. If you’re not prepared, the additional fees may surprise you.
To ensure that your home-buying process goes as smoothly as possible for you and your family, be sure to make room in the budget for lenders fees and other home closing costs. Strive to be realistic about what you can afford and stay within your budget.
Understand the Terms of Your Home Loan Agreement
Always read the fine print of your loan agreement, and make sure all the important details are in writing. It’s essential to fully understand the terms and conditions of your home loan before you accept anything.
If you don’t fully understand an area of your loan agreement, be sure to ask questions. After all, that’s what a helpful loan officer is there for! If you tend to forget things when you’re under pressure, consider jotting down some important notes before meeting with your mortgage professional.
Mortgage Help to Make Buying a Home Stress-Free
Whether it’s your first time or your fifth time, buying a home can be tricky. However, we make mortgages easy. Avoid these common home loan mistakes and you’ll be happily settled in your new abode in no time at all.
Ready to get started? You can pre-qualify for the home of your dreams in just seconds! Find out how much money you can get so you never have to rent again.
Comments