Mistakes and Errors When Buying a Home

Mistakes and Errors When Buying a Home

Mortgage rates have risen somewhat recently.  Inventory is still low in the housing market.  Does this stop someone from purchasing their dream home, or from progressing towards their goals?  No it should not, and the real estate market has reflected that.  Home ownership is still very desirable and homes continue to be sold.  There are pitfalls, however, during the process of buying a house.  New home buyers should be careful to avoid these.  

The first rule might have to be- don’t fall in love so much with the first house you look at that you don’t look at others.  There are innumerable forms of homes out there in every corner of the country, and seeing a good variety before deciding on a preference is a really good move.  Variety will help you decipher similarities and differences between properties.

The pitfall that would fall into the “biggest mistake” category would be if you made another large purchase using credit.  This will negatively affect your overall credit at the same time you are trying to get approval for the mortgage.  You also don’t want to unnecessarily pay off debt at the time you are being approved.  This could alter your credit report, which you don’t want right when the lender is reviewing your application.  Hawk Mortgage Group, located in Harford County, is one of Maryland’s leading mortgage brokers.  They shop all the rates and are able to help home buyers navigate these pitfalls.

New home buyers should also be somewhat aggressive in attempting to get what they want.  Don’t be timid.  First of all, purchasing a home is a process.  It is not something you want to procrastinate with.  A pre-approval is a good idea.  This gives the buyer an estimate of what they will be able to buy (their buying power).  Another method in being aggressive is maybe starting to look at purchasing a home prior to when you think you are the right age for it.  In other words, some perceive buying a house as an almost insurmountable task in your young age, but with solid income and credit almost anyone can live the dream.

You do, however, want to be aware of all the costs of a home.  It is not just a mortgage payment.  Do not go into the process omitting important costs from your budget, because that is a quick way to foreclosure.  First, there are closing costs when purchasing a home.  Appraisal fees, inspection fees, title costs, taxes, etc., make up these closing costs and are generally due at or before closing on the home.  In addition, homeowners insurance is necessary and a PMI (private mortgage insurance) may be, if the credit rating isn’t high or a large enough down payment isn’t made.  Hawk Mortgage Group is experienced at walking a potential home buyer through all the fees that may be associated with buying this home.  Property tax is yet another added expense, and is based on the value of the property and where the property is located.  

Home buyers should also be measured in choosing the proper lender for their purchase.  Recommendations are fine, but a buyer should definitely do their homework.  Sometimes lenders can provide better rates if you already do some banking business with them.  A mortgage broker can shop the best rates.  Hawk Mortgage Group in Bel Air, Maryland is ready to sit down and consult with all potential home buyers, and assist them in deciding the proper path to ownership.  Serving Maryland, Delaware, Pennsylvania, and the DC area, Hawk Mortgage Group will help you to outline the costs associated with purchasing a house and what mistakes to try to avoid.