The time has finally come. You've worked hard, you've saved up some money and you're finally ready to put down some roots.
It's time for you to realize your dreams of becoming a homeowner.
There's no doubt about it, this exciting time can also be pretty nerve-wracking.
Don't worry, you're not alone.
Avoid these common pitfalls of young homeowners to guarantee your home buying process goes as smoothly as possible.
1. Don't Underestimate Yourself
Many young people simply believe that home ownership is beyond their reach, and something they should only pursue further down the road. Deciding it simply makes more sense to keep on renting, thus preventing themselves from acquiring an asset which can help ensure a better future for themselves and their families. Even if you're young and you don't have the same sort of income as your parents, with a down payment of as little as 5% you can get yourself into a home of your own. If you don't start though, there's no way to get there.
2. Not Understanding the Actual Costs
The sticker price of the house and the monthly mortgage estimates aren't the only costs of owning a house, and if you don't factor in all of the expenses, you can easily find yourself getting in over your head.
3. Falling in Love with a House At First Glance
There can be pressure to become a homeowner, but it is worthwhile to take a deep breath and slow down a bit. This is a major decision and there is no reason to rush and decide to close on the first house you see.
4. Not working with a Mortgage Broker
For such a major investment this may come as a surprise, but around half of homebuyers in the US don't comparison shop for mortgages. These buyers go to their local bank branch or a lender they are familiar with and get a mortgage quote and feel they are bound to it. As a mortgage broker, Buyers Choice Lending has access to many funding sources. You are the customer and we work for you, not the other way around.
5. Skipping the Inspection
Nobody wants to be stuck with somebody else's burdens, headaches, or fixer-uppers. This goes for buying a used car, and it certainly goes for buying a house as well. The previous homeowner is looking to sell and do so at a price that works for them, without too many questions asked.
6. Skipping the Preapproval
When you get pre-approved for a loan, the lender will tell you how much of a loan you can expect to receive and what type of payments you can expect to face. Also, once you've been pre-approved, you can show that to a potential seller, to show them that you are serious and able to purchase the home. The seller will know that you have secured financing and that once you're ready to sign on the dotted line, you've got a lender who will put up the mortgage.� Get pre-approved, and step to the plate ready!
Buyers Choice Mortgage Lending and the First-Time Home Buyer
To first-time home buyers, the mortgage application process may seem like a whole new world, with different terms and rules to learn, and so many decisions to make. Home buyers not selling a home tend to have smaller down payments, and less-established credit histories. On the other hand, they may qualify for government programs to help them get into a home. Buyers Choice Lending works well with first-time home buyers which can be an important step toward getting your new home. If you're a first-time home buyer, it's important to have a lender that is willing to work with your unique challenges and give you the rate and terms that work for you. We help you through the mortgage application and funding process and will answer questions when you need it. This is especially important when you're buying your first home.