It is impossible to be an expert in the industry when you are a buying a home for the first time. This means that it is common for new homebuyers to make mistakes when purchasing their first home. So, to help prevent this from happening to you, your local Tampa mortgage lender with Hunter Home Loan has listed the top five mistakes first-time homebuyers make and how to avoid them.
Mistake #1: Not Knowing Their Affordability
Some homebuyers are so eager to buy a home that they fail to take the necessary steps to better their homebuying process. This includes speaking with a mortgage professional ahead of time so they can review your finances and see what type of home best fits into your budget. This can help save you time when beginning your home search because you will know what price range to focus on and can avoid viewing homes that are not within your budget.
Mistake #2: Not Getting Pre-Approved
Pre-approval has many added benefits such as letting you know your affordability and it gives you more credibility with sellers. This shows sellers that you are financially capable of owning your own home and can afford a Tampa mortgage. It is also important to note that some real estate agents may even refuse to work with you if you have not been pre-approved.
Mistake #3: Not Saving Enough Money For A Down Payment
If you cannot afford to pay at least 20% of your home’s down payment, you will be required to obtain private mortgage insurance (PMI). This insurance will be charged by your mortgage lender so they are protected in case you miss any of your mortgage payments since you will be considered a high-risk borrower. So, to avoid paying for additional fees, make sure you have a substantial amount of savings before you begin your application for a Tampa home loan.
Mistake #4: Not Considering Additional Closing Costs
Most first-time homebuyers are unaware of all the additional closing costs that are required before you can close on your mortgage. This includes, but is not limited to, your origination fee, lawyer fees, appraisal fees, home inspection, escrow fees, and title insurance. Therefore, start saving enough money now to pay for these additional costs.
Mistake #5: Not Having A Stable Income
You risk the chance of your loan application getting denied if you do not have a stable income. Most lenders prefer that you be with your current employer for at least two years. Lenders will want to see that you have enough money coming in consistently so you can make payments towards your mortgage and being with your employer for at least two years helps support that.
For more information on top homebuyer mistakes or to get started on your Tampa mortgage application today, please contact the Hunter Home Loan team at 813-230-9428.