3 Mistakes a First-time Homebuyer Makes

Written by Posted On Monday, 14 January 2019 23:05
  1. 1. Looking at the purchase price and not the monthly mortgage payment

Don’t forget there are taxes, homeowners insurance, private mortgage insurance, possible HOA fees along with the interest rate & other fees that have to be accounted for when searching for your next home. We suggest speaking to a lender prior your home search to see what you can actually qualify for.

  1. 2. Not checking your credit score

The interest rate of your loan will be very dependent on your credit score as well as your debt-to-income ratio. 

The higher your credit score, the lower your interest rate will be.

Your debt-to-income (DTI) ratio is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage payments you make every month to repay the money you have borrowed. Ideally you’ll want the lowest DTI possible.

If you feel discouraged with your score or If you have a DTI close to 50%, you should probably reconsider buying a home and speak with your lender on creating a long term plan to reduce your debt and how to increase your score so you can buy your home comfortablly.

  1. 3. Choosing the house over the town

You can always rennovate the kitchen or add that extra bathroom down the line, but choosing a town that matches your needs is crucial in the home search. 

Below are three things to consider when choosing a town:

  • Is this town a safe neighborhood?
  • Does this town have a good school district?
  • Is this town close to public transit/highways?

Rate this item
(1 Vote)

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries