6 Mistakes Snohomish County First Time Home Buyers Should Avoid
6 Snohomish County First Time Buyer Mistakes
Buying your first home can be overwhelming. The prospect of making such a huge purchase can leave the first-time home buyer confused by the overload of information and more vulnerable to overlooking important issues. Agencies like House Buyer Network can help in such regards, and more often than not, many buyers take their aid. That’s why there are some common mistakes that home buyers make which they absolutely must avoid. Let’s take a look at a few:
1. Failing to check your FICO score before attempting to apply for a loan. A low FICO score can increase fees and interest rates. A FICO score of 740 or more can eliminate fees. But a FICO score below 620 can create a loan which is burdened with both high fees and high interest rates. If your FICO score is below 620 you really should take the time and effort to systematically increase your score by paying down debt and resolving any defaults and delinquency issues.
2. Failing to get preapproved for a mortgage before you begin house hunting. One of the mistakes that first-time home buyers make is that they begin to shop for a home before they even know how much loan they can get. Also, by being preapproved for a mortgage, you will be prepared to make an offer if you see a home you like.
3. Opening up new credit accounts or making major purchases on your credit cards while your mortgage application is in the approval process. Opening a new credit account or using up more of your credit line can cause your FICO score to drop which could be a red flag for the mortgage lender.
4. Failing to get a team of professionals to protect your interests. Many first-time home buyers make the mistake of believing that buying a home is a DIY project. But the reality is that buying a home can be complicated, one mistake could cost the homeowner thousands of dollars or even eventually lead to foreclosure. Smart first-time home buyers will make sure they work with an experienced real estate agent so that they can have someone helping them through the process.
5. Signing sales contracts which require the buyer to forfeit their earnest money if they pull out of the deal, without making sure the contract contains exceptions such as discovering major problems during the home inspection, the inability to obtain financing or the failure of the house to appraise at the right value.
6. Underestimating the true cost of home ownership. Many first-time home buyers only factor in the cost of the monthly mortgage payment when deciding if they can afford a home. But the true cost includes insurance, taxes, utilities, repairs and maintenance. Owning a home is more expensive than renting an apartment; buyers must prepare themselves for this reality. As they usually buy a house as it is, they can evaluate all the expenses and estimate house real condition. You would be very lucky to check out houses with a specialist like that.
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