Discover How to Avoid the 6 Most Common Homebuyer Mistakes
Don’t Buy a Home Before You Read This FREE Special Report on
How to Avoid the Most Common Homebuyer Mistakes
A new report identifying the 6 most costly and common homebuyer mistakes when buying a home has just been released.
With significant changes to mortgage regulations over the last few years, your options are wider than ever.
Whether you’re planning to make a move to your next home or are about to buy for the very first time, it’s vital that you inform yourself about the factors involved.
In answer to this issue, we have prepared a FREE special report entitled “6 Things You Must Know Before You Buy”. Having the right information can make a major difference in this critical negotiation.
Keep Reading NOW to find out what you need to know to secure the best mortgage for your next move.
“Small differences in the way you structure your mortgage can impact the outcome for you. Even subtle changes in the way you approach mortgage shopping can end up saving you thousands of dollars and years of expense.”
Keep reading for strategies to Avoid these Common Homebuyer Mistakes!
Mortgage Regulations Have Changed . . .
Mortgage regulations have changed significantly over the last few years making your options wider than ever.
Get the Right Information
6 Things You Must Know
Before Obtaining a Mortgage
Before you commit your hard earned dollars to monthly mortgage payments, consider these 6 issues. Effective consideration of these important areas can make your payments work much harder for you.
#1 – PRE-APPROVAL
You can, and should, get pre-approved for a mortgage before you go looking for a home
Pre-approval is easy and can give you complete peace of mind when shopping for your home. Your local lending institution can provide you with written pre-approval for you at no cost and no obligation. In fact, it can be done quite easily over the phone.
More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank.
It entails a completed credit application and a certificate, which guarantees you a mortgage to the specified level when you find the home you’re looking for.
#2 – BUDGET
Know what monthly dollar amount you feel comfortable committing to
When you discuss mortgage pre-approval with your lending institution, find out what loan amount you qualify for.
Your qualifications may give you a pre-approval amount that is higher (or lower) than the amount of money you would want to pay each month.
Work with your lending institution to determine what payment you are most comfortable with. Then, find out what value of home this translates into at today’s interest rates. You don’t want to waste time looking at homes above or below your price range.
#3 – YOUR GOALS
You should be thinking about your long term goals and expected situation, to determine the type of mortgage that will best suit your needs
There are a number of questions you should be asking yourself before you commit to a certain type of mortgage; How long do you think you will own this home? What direction are interest rates going in and how quickly?
Is your income expected to change (up or down) in the near term, impacting how much money you can afford to pay to your mortgage?
The answers to these and other questions will help you determine the most appropriate mortgage you should be seeking.
#4 – RESEARCH
Make sure you understand what prepayment privileges and payment frequency options are available to you
More frequent payments (for example weekly or biweekly) can literally shave years off your mortgage. If you structure your payments so they come out more frequently, will significantly lessen the amount of interest that you will be charged over the term.
For the same reason, consider an authorized pre-payment of a certain percentage of your mortgage, or an increase in the amount you pay monthly. Both of these strategies will have a major impact on the number of years to repay the loan. This will shorten your payment term considerably.
These two payment options can cut years off your mortgage, and save you thousands of dollars in interest.
However, not every mortgage has these pre-payment privileges built-in, so make sure you ask the proper questions.
#5 – OPTIONS
Ask if your mortgage is both portable and/or assumable
A portable mortgage, where available, is one that you can carry with you when you buy your next home and avoid paying any discharge penalties. This means that you will not have to go through the entire mortgage process again unless you are making a move up to a much more expensive home.
An assumable mortgage is one that the buyer for your home can take over when you move to your next home. This can be a very powerful tool at the negotiating table, making it much easier and more desirable for a buyer to buy your home, and again saving you any discharge penalties.
#6 – EXPERTISE
You should seriously consider dealing with a Mortgage Expert
Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make a significant difference in the cost and effectiveness of the mortgage you obtain.
For example, they can make the process faster thereby avoiding costly delays. Typically there is no cost or obligation to inquire.
We hope you enjoyed these awesome strategies to
Avoid these 6 Common Homebuyer Mistakes!
Keep reading below for buyer resources or to contact a YHSGR Agent.
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Real Estate Agents Will Avoid Common Homebuyer Mistakes
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