Every existing homeowner was a first-time buyer and is well-aware of the challenges they experienced. It is not a decision that needs to be rushed but has to be taken with utmost responsibility. Home shopping includes plenty of work and an ongoing commitment to maintain their investment.
Never buy a home in a rush
Home buying decision needs to be taken seriously. Just because everyone is investing or the mortgage rates are low or someone told that you are throwing cash on rent, is not a good reason. Think about buying a home if you are settling down and financially prepared. Below are some tips that will help you avoid common first-time home buyer’s mistakes and navigate the process with ease.
Tips for mortgage down payment
Lots of mortgage options are available for first time home buyers with different down payment configuration.
- FHA loans – If the first time the buyer is struggling with down payment then choose this option because the offer is 3.5% down!
- VA loans – Military members and veterans qualify for VA loans. There is no need for PMI or down payment.
- Fixed 30-year loan – Lock in low payment without any concerns about the change in interest rate, a secure loan program.
- Adjustable-rate loan – It has a low rate of interest for the initial few years but is risky.
First time home buyer needs to remember that high down payment means low monthly loan payments. Sammamish is a Seattle Mortgage Company offering a different kind of home loans at competitive interest rates. They have been helping the Seattle community match home buyers with a reliable estate agent in their network as well as guide them through the mortgage process.
Tips for mortgage application
- Before shopping for a dream house, determine your affordability.
- Your credit is the main aspect, which will be considered for loan approval, possible terms, and determines the interest rate. Check your credit and if you can try to improve it. Avoid opening new credit accounts like auto loans or credit cards until the closing of the home loan period.
- Compare mortgage rates and fees requesting for 3 to 4 quotes. If you plan to settle long in the home and have funds on-hand then ask the lenders if buy points are allowed. It means you prepay interest up front and secure a low rate of interest on the loan.
- Get written pre-approval for the loan, which gives an idea of a price you need to look for while home shopping. It even reveals to the seller that you are serious about making a deal. Written loan pre-approvals are given based on your debts and incomes.
Tips for house shopping
- Higher a reliable and experienced real estate agent.
- Choose the right kind of home and neighborhood.
- Shop with a solid budget and stick to it.
Common errors first-time buyers need to avoid
- Ignoring closing costs, while setting a budget.
- Not considering a buffer amount need to make improvements after the move.
- Buying home fulfilling your current needs rather than considering the future needs.
- Avoiding negotiations.
- Less knowledge about home inspections.
- Buying insufficient homeowners’ insurance coverage.
All the best for your dream house shopping!