Author: Krisztina Neglia
Buying a home, particularly your first home, is an exciting event but it can also be a stressful and at times overwhelming process. With a little bit of leg work before you begin your search for a new home, you can remove some of the stress associated with home buying. Here are a few tips on how to avoid the most common mistakes home buyers can make. While this is not an exhaustive list, it will prepare you for what is coming during the home buying process.
Many home buyers are not properly prepared for the home buying experience do not know what to expect all together. Here are the four common mistakes many home buyers make and how you can avoid them.
1. Know Your Credit Rating.
Most people assume that they have good credit and do not know what their credit rating is exactly. Your credit rating can influence not only how much of a mortgage you can qualify for but also how competitive your mortgage interest rate will be. You can use a company such as Equifax to perform a simple credit check that will confirm your credit standing and allow you to correct any potential errors before you apply for a mortgage.
2. Use A Mortgage Broker.
Beware of trying to shop around yourself for your mortgage. It is not only time consuming and a little difficult, it can also negatively impact your credit rating. Every time you request a mortgage quote from a lender your credit rating is checked and that check is recorded on your credit report. This can affect your ability to get a mortgage, or a good mortgage rate, because someone who has their credit ratings verified often is most likely a high risk client for a lender. A mortgage broker can help you to not only shop for a mortgage on your behalf without damaging your credit rating, but can also discuss the different mortgage options that are available to you. There are more things to consider when getting a mortgage than just the interest rate.
3. Get Pre-Approved.
Most buyers do not know the difference between being pre-qualified for a mortgage and being pre-approved for one. A pre-qualification will only serve as a guide as to how much you can afford to buy. A pre-approval is a commitment from a lender. It indicates the maximum purchase price of your future home, the interest rate they are offering you and this pre-approval is guaranteed by the lender for a specific period of time. This is usually 90 to 120 days. Knowing how much you can pay for a home will save you time and disappointment. You will be able to concentrate only on the home within your price range and having a commitment in writing from a lender will give you some peace of mind during your search.
4. Closing Costs.
Be aware that once you purchase a home, there will additional costs to be paid at closing. To avoid any surprises when the deal closes and you try to take possession of your new home, make sure you know what you will need to pay over and above the purchase price of your home. Other than the down payment, you will need extra funds to pay your lawyer’s fees, property taxes, land transfer taxes and the like. Ask your real estate professional to explain all of the additional costs you will need to pay at closing. You want to be prepare and budget for them as they will run you a few thousand dollars.
Buying a new home is an exciting moment in anyone’s life. With a little planning and education you can ensure that the home buying process is as painless as possible. Remember to use the professionals that are available to you such as your real estate agent and your mortgage broker who will be able to guide you through the home buying process.
About the Author:Krisztina Neglia is a RE/MAX Specialists sales representative who specializes in Oakville real estate and is an expert in the market. Search here for Oakville homes and real estate information. Krisztina will be happy to assist with your real estate needs.
Article Source: http://www.articlesbase.com/real-estate-articles/common-home-buyers-mistakes--779021.html