First Time Home Buyers
Here are some things I learned the hard way as a first time buyer:
1. Never trust anything a mortgage broker tells you-
Read over every little detail. These people try to bury in paperwork to hide mini-details that can save you hundreds of dollars. Best yet, be your own mortgage broker.
2. Taxes (not home costs) are the main concern when purchasing a home-
Alot of people rent or live with relatives prior to purchasing home. They have no idea the importance of taxes in the whole equation. See home purchase price eventually goes away, if you found your dream house and live there for 15 - 30 years. Taxes never go away.
Many first time buyers never even factor in taxes when buying a house. The know there budget, they know the can afford a $2,000 a month payment. So, they punch that into number into a mortgage calculator and say “Yeah, we can afford a $315,000 house at 6.5% for 30 years.” Not even close! Let say the taxes on this home are a modest $6,000 a year. Well that’s $500 less a month you can afford. You finally realize, you can afford a home for a maxiumum of $240,000. This mistake cost me 3 months of my life as a seller. The first buyer I had on my house made this mistake. Just prior to closing, they realized this and the mortgage company disqualified them for our house.
3. Realtors are out for themselves-
They get paid for getting you to buy. Never take any advice that directly influences your purchase from a realtor. When you key in on a particular house, your realtor will begin telling you everything you want to hear to close the deal. As a buyer, they are just there to tell you the features of the home and property.