First time homebuyers in Texas and elsewhere often commit rookie mistakes that cost them hundreds to thousands of dollars. Though there are several first time homebuyer programs in Texas, homeowners need to do their homework before finalizing their dream home. Having said that, the blog post lists five most common home buying mistakes that can easily be avoided. Let’s take a look.
1. Skipping Mortgage Pre-Qualification Many first time homebuyers in Texas do not factor their monthly income and credit score that lenders perceive as one of the criteria to determine suitability before granting a loan amount. Most of the time, homebuyers place an offer to the seller to buy a home and later on, come to know the sanctioned loan amount is way below their expectations. The only way to avoid such a situation is to go for a mortgage qualification and ensure the loan is “pre-approved” before committing to buy a home. 2. Overlooking Additional Expenses Being a tenant and a homeowner are entirely different. As a homeowner, you are not only responsible for the monthly mortgage payments, but also need to have a buffer for additional expenses such as property taxes, maintenance and repair costs that are a possibility. You need to factor each and every expense that goes from your pocket once you are the homeowner. Plan your current and projected income to be assured that you can save for future commitments after paying for your mortgage payments and additional expenses. 3. Rushing for Renovations Though renovations enhance the value of any home, homebuyers should not straightaway go for costly renovations. As you are expected to pay recurring mortgage payments, it’s better to hold renovation plans until a sizable amount of loan is already paid off. Even if you plan to renovate, strike a balance between value and appeal to prevent renovation costs going over the roof that may impact your regular finances. 4. Clinging to a Long Term Loan No doubt long term loans may allow you to make comfortable monthly payments, you end up paying a lot more than the actual amount due to higher interest rates. What you should try is to repay the loan as soon as possible to avoid unnecessary financial pressure in future. For that to happen, solid financial planning needs to be in place. Plan your monthly expenses wisely and ensure you have sufficient balance to invest in retirement funds and other saving plans. Take professional help if required. 5. Choosing the Wrong Loan Program When you are to buy a home, there are plenty of first time home buyer programs in Texas that offer lucrative interest rates and assistance. The only challenge is to get the most suitable loan that complements your monthly income, personal preferences or has the most lucrative home mortgage rates in Texas. Take professional help to decide what type of loan suits your requirements and is aligned to your financial condition. The Bottom Line Before going for any first time home buyer programs in Texas, every home buyer must weigh the pros and cons of every program. Each program is designed keeping in mind specific interests of people and therefore, home buyers need to understand what program works in their financial interest. Compare different loan programs, seek professional help to understand the finer lines of each one and finally, select the program aligned to your financials and long-term goals.
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AuthorDarrick encourages readers to post issues that need immediate attention in terms of home buying; such interactions will enhance reader engagement and provide a road-map for others Archives
November 2017
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