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FHA First Time Home Buyer Mistakes

Today we are gonna be discussing errors that buyers make all the time that cost them thousands of dollars and even losing out on their dream house.

First one is handling new financial obligation while you are under contract.

When you men are first beginning the procedure of buying a house, you’re gon na be working with a lender to learn what kind of loan you qualify for, how much, what type of interest rate, and they’re gon na be looking at various things to see what you receive. One of those things is your debt to income ratio, just how much financial obligation is going out and how much income is coming in. So if you go out and you buy a brand new automobile or you go and buy an entire lot of brand new furnishings on your credit car, it alters your debt ratio for that reason you may not receive that loan any longer due to the fact that you accrued new debt.

So as exciting as it is to get a brand-new house, do not go out and make any huge purchases. Wait until your home has actually been closed on and you are officially in the house.

Number two, being impractical and inflexible.

What I imply by this people is that there’s no such thing as a best home. When you discover the house there might be some things that you’re just gon na have to compromise on. Some things you can think of would be your commute time to work, the kind of school districts, how big your home is. A few of these things might vary in different areas however you have to recognize that you’re gon na have to jeopardize on something however you can discover a home that has the majority of whatever that you desire.

Also focusing on small things such as paint color, the condition of the carpet, the doorknobs, things that you can actually alter which you have power to alter on. What you truly wish to focus on is the things that you can’t change like the layout of your home or the structure of the house or where your home lies. Those are the important things that you really wan na focus on, not the actually little minute information that you really have the capability to fix and they are relatively economical.

Number 3, not getting pre-qualified. I understand guys, it’s so amazing to go try to find a home, however what you really wan na do before you start home searching is get pre-qualified. You wan na understand what type of loan you’re gon na get, what kind of rate of interest, if there’s something that you can deal with so that you get a much better interest rate, your payments are lower. If you guys head out and you begin house hunting and you’re looking above your rate variety, it’s gon na be a heartbreak when you discover that you can’t afford that house. So you absolutely wan na get pre-qualified, one to make certain that you understand your budget, two if you require to work on something you can figure out that timeline of when it would be best to buy a house.

Number 4, relying on Zestimates.

We have buyers all day that tell us well Zillow this home pulled up for this much and Zillow stated this and Zillow said that. Guys, Zestimates are so unreliable. They are not the best tool to use to base the worth of a house. The reason why is because they really do not have up to date information, they don’t understand the condition of the property, they do not understand the neighborhood, the views that the property has, so it’s a really actually unreliable tool.

We inform our purchasers to stay away from it and I would recommend you men to do the same.

Number five, working with online lenders.

In some cases looking online guys can lead to many numerous problems. I know you wan na discover the very best rate of interest online and you wan na try to get the details as soon as possible however the very best perfect thing for you to do is to deal with a regional loan provider. The role of the lender is such a big consider the home purchasing process.

You people wanna deal with a loan provider who is responsive and communicates well and also gets the documentation done on time. What we suggest to all of our buyers is to find a regional lending institution. Primary they’re gonna be in the very same time zone so you do not need to fret about if this person’s three hours behind or if they’re three hours ahead, you do not need to fret about any of that because they’re in the very same time zone. Typically they’re very responsive since they’re actually in your area. Regional loan providers know about laws and guidelines in your state and they really can educate you about incentive programs that can help you. Okay men, so those are the five most typical errors that very first time house purchasers make and we hope that we helped you find out something today and ideally avoid those mistakes if you have not bought a home yet.