Buying your first home is an exciting but long and demanding process. Before setting out on the journey, there are a few things to be mindful of to avoid problems and headaches along the way. Our experts at Group Guaranteed Title in Fort Collins have decades of experience between them, and would like to help you avoid two of the most common mistakes made by first-time buyers.
Mistake #1- Not knowing your price range
Know what you can afford and be realistic with your budget. One thing we should all take away from the real estate market crash a few years back is that what the bank says you can afford isn’t necessarily what you should be spending. Have an idea of what you can actually afford or feel comfortable paying to avoid any troubles paying your mortgage down the road. This may also help you realize that you aren’t ready yet and need to reduce some monthly expenses or increase your income before looking.
Mistake #2- Skipping Loan Qualification
Even if you think you won’t have any problems with getting the mortgage you desire, get pre-approved for your loan well before making an offer. The amount you expect for the bank to loan you may not match what they are actually willing to give you. Previous issues with your credit may hinder you from getting a sufficient mortgage. Also, don’t jeopardize your sale by making any purchases that will affect your credit, like financing a car. If your sale falls through at the last minute because you aren’t qualified for as much money as you need, you will have wasted a lot of time and likely lose thousands in the contract process.
Depending how your personal experience goes, it may take months before you actually start the paperwork and contract. Prepare yourselves as best you can before you start your journey, and for other real estate help or title insurance in Fort Collins, call us today at (970) 613-4364.
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