More first time home buyers are choosing to stop renting and start building equity in their own homes.  It’s a challenging process to get approved for a mortgage, find the right realtor, find the right home and stay within a realistic budget.

Here are some of the most likely mistakes that first time buyers can make:

1.  Forgetting they’re now responsible for all home expenses:  As a renter, you only have to pay for the rent, not the home repairs which can add up and add up quickly.  There’s property insurance, basic and unexpected maintenance, as well as possibly HOA dues too taht have to be added into the calculations for the monthly costs.

2.  Putting everything down for the downpayment.  Stop.  If you have to do that then you can’t afford to buy right now or you need a different mortgage program.  Just because you don’t have the 20% down doesn’t mean that you can’t buy just that perhaps you should do a 10% down loan and have mortgage insurance that can be paid off over time.  You must have savings because the unexpected will happen.

3.  Thinking it’s time to furnish.  Do not buy any big ticket item or have any unusual spending until you close the loan.  Your lender can pull your credit report just before closing to make sure that your finances haven’t changed since the loan was approved and new purchases on credit can throw off your debt to credit ratio making you ineligible for the loan you previously qualified to obtain.  This can cause delays and in some cases, perhaps keep you from buying the home.

4.  Not using the right realtor or mortgage company.  If you’re just another number or not getting personalized service then you need someone else to assist you.

There’s no need to make one of the top mistakes made by first time home buyers.  We’ve worked with numerous home buyers on their first time purchases.  We know the time and attention that you deserve and can help guide you to make a good decision that works for you and your family.

Give us a call when you’re ready to take the first step.  We can help you find the right mortgage company and guide you through every step of the process.  239.293.0246.