Finding out just what is involved in the home-buying process can take some first-time homebuyers by surprise. It is not just a process of finding the right house, but the financial end can be overwhelming. Keep these tips in mind to help you avoid common errors a home buyer can make: 

 

  • The all-important first step: before going to a lender, make sure your credit is in good standing. 
     

  • Being pre-approved for a mortgage does not impress many sellers, so it is important to be pre-qualified. Talk to different lenders to line up the best deal for you and your budget. 
     

  • Do not overestimate how much you can afford. Avoid properties on your initial search that are truly dream homes. The pre-approval process will offer a reality check because your approved mortgage amount is set. 
     

  • Applying for a loan for a new car, credit cards, or even new furniture to go in your home can hurt your credit score during the mortgage process. 
     

  • Sometimes buyers assume that all costs of buying a house are included in the loan amount, which is not the case. Closing costs, on average, are 2-5% of the purchase price of the home, and there is earnest money and a down payment to be made. 
     

  • Do not let your finances deter you from buying a home! While the process may take more time, there are several programs ready to assist first-time home buyers. Many require less than 20% down. Other programs provide financing for those who live in rural areas, as well as those with credit issues or lower income. Go to realtor.comⓇ for a list of available programs. 

 

You might also believe that it will cost out of pocket to have a RealtorⓇ represent you as a buyer’s agent. Not true! Their fee is paid from the purchase of the home on the seller’s end of the transaction. Your agent will guide you along this winding path but will do all they can to lead you to the house at the end! 

 

Courtesy of New Castle County DE Realtors Tucker Robbins and Carol Arnott Robbins.

 

Photo credit: Hunt Mortgage