Important Mortgage Tips For First Time Buyers

gg61358708Anyone who buys a home can make mistakes during the home purchase but for first time buyers the chances of making a mistake can be much higher.  It is very important that the first time buyer chooses experienced and trust worthy professionals to help with both the real estate transaction itself and the mortgage process.  Make sure you are working with professionals that care about you and about making sure that everything goes as smoothly as possible for you in your first purchase.  I make sure my first time buyers meet with the mortgage people I know and trust to get the job done efficiently.  Here’s the information on the four biggest mistakes first time buyers make:

Don’t Spend The Maximum You Can Afford On Your Home Purchase

Your mortgage lender is going to tell you the maximum monthly payment you can afford based on your current income and expenses.  But remember a home of your own can produce unforeseen expenses such as repairs or additional expenses you were not counting on.  Also you will have to make those mortgage payments for 30 years and during that time could decide to add the expense of children or job changes.

Decide how much you feel comfortable spending on a mortgage each month and discuss with your lender how much money that payment will allow you to spend and then look for homes in that price range.

Get Pre-Qualified Before You Start Looking At Homes

My first question to my buyers is how much do you qualify to borrow before I start showing them new homes.  A consultation with a mortgage lender is free of charge and can avoid many disappointments down the road.  First of all, perhaps your credit and debt ratio is in a position where you  cannot purchase a home yet but with some help tidying up your finances you can buy a home next year.  Secondly, once you have seen that beautiful home that you fall in love with and then find out it is too expensive for you, you will never be happy with something else in your price range.

Understand The Importance Of A High Credit Score

It is extremely important to protect your credit score and pay your bills on time each month when you are considering purchasing a home.  A credit score below 620 will stop you from qualifying for any mortgage and the higher your credit score the more options you have when looking for good terms from a bank.  Also, don’t apply for any credit cards or add any debt when you are in the home buying process, that could affect your score and not allow you to close on your home.

Choose The Correct Mortgage For You

Make sure you discuss the options of different mortgages and different amortization periods with your lender.  Are you planning to live in this home forever or do you think you could be transferred in a few years?  These questions will be important in deciding what type of mortgage is best for you.  Ask your lender to explain the differences and the costs of the mortgage products they sell.

All these tips are good advice but the best advice is to contact me first at 239-601-3174.  I have some excellent mortgage brokers that I work with in the Naples area and I know they will help you steer clear of mortgaging disasters.  Once we have you fully qualified for a mortgage, the fun part begins.  Looking for your first home is an exciting event and I love to help my buyers find their perfect home.

Remember, it is always toasty in Naples and you deserve your piece of Naples sunshine!




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