The home buying process is often an overwhelming and confusing endeavor, especially for first time homebuyers. The best advice you can adhere to is be prepared and do your homework. There are many steps to take in order to get the process under way. Here we are taking a look at the biggest mistakes to avoid when applying for a mortgage.
Applying for and understanding mortgage loans can be a very confusing process for anyone. The terms, the lingo, and the paperwork can become very overwhelming very quickly, and the confusion often leads to misunderstanding important terms in the application process. There are two terms in particular that are used and referred to throughout the entire process, from the loan application review to the closing, and those terms are Interest Rate and Annual Percentage Rate (APR). Since these two words refer to the amount of money you will be responsible for paying, it is extremely important to know the difference between the two and how they relate to your mortgage payments.
Renting instead of Buying. Plain and simple, renting an apartment or a house will not build equity. Your payments are not providing any financial benefit to you. Once you know you are ready to take the step into home-ownership and you are financially prepared to do so, do not procrastinate. Even if you know you might be moving or know you will eventually want a larger or newer home, buying a house now just might prove to be a sound financial investment. If you can find a home at a decent price or a home that needs a bit a work that you are not afraid to tackle, the equity you build up has the potential to provide a much-needed down payment on a home you can plan your future in.
Though most people probably agree it is not the ideal time to buy a home, home shopping in the winter can lead to some great opportunities. You might find yourself in a position where you need to move during the winter (new job, losing your current rental, family illness), or perhaps winter is the only time you can really fit home shopping, and all of the glorious activities that go along with buying a new home, into your family’s busy schedule. Whatever the reason, we have outlined what you should know about winter home hunting and buying.