Blog

First-time Homebuyers should avoid these 5 Mistakes

First-time Homebuyers should avoid these 5 Mistakes

January 16th, 2019 | Purchasing a Home, First-time Homebuyers, Preapproval

Buying a home for the first time is a very exciting adventure, but as with any new experience it can be easy to make plenty of mistakes. In order to make a satisfying purchase, try to avoid these 5 big first-timer blunders.

1. Get Pre-Approved before looking for a home

If you are truly ready to make a home purchase, start with first things first. Contact Cornerstone Equity Group, Inc. to get pre-approved for a mortgage. This will give you a good idea of how much home you can afford and it will make you a viable buyer when you find the right house. Otherwise, you run the risk of falling in love with a property only to have it snatched away from you by someone who already had their financing in line. In many hot markets, sellers do not even consider offers from buyers who are not pre-approved for loans. Getting that approval takes only a day or so. Before you ever go out looking with your real estate agent, get pre-approved.

2. Don’t Blow Your Budget

Even though you may be pre-approved for a certain amount, that doesn’t necessarily mean that is how much you should spend on a house. That is the maximum amount that the lender believes you could financially handle, but it may be higher than what would comfortably fit your budget. Take into account your current debts and figure out how much of a monthly mortgage payment you could reasonably afford after taking care of all those obligations. Buying more home than you can afford can stretch you too thin and increase your risk of late payments or even foreclosure. And remember that a first-time purchase is rarely a last-time purchase. It is likely that you will want to buy a different home later, so make your first purchase modest and affordable.

3. Don’t Underestimate the Cost of Homeownership

Similarly, before you buy, take a long look at what it truly costs to be a homeowner. Most first-time homebuyers underestimate how much money will be spent on maintenance, repairs and upgrades and do not plan accordingly. Make sure you do not drain your savings to buy your first-home because you will likely need a good stack of cash to keep up your new place.

4. Don’t Limit Your Loan Options

First-time buyers are usually not familiar with all the possible mortgage loans out there but researching the options can definitely save money. There are traditional conventional loans of course, but there are plenty of loan programs designed to help those who have lower credit scores or less than a 20% down payment. Be sure to look into FHA loans, VA or USDA loans if they apply and even piggy-back mortgages. Call us today at 702-780-1500 to discuss what programs might be available to you.

5. Don’t Make Costly Credit Mistakes Before Closing

We will run your credit score during the preapproval process. From this point until you close, it is essential to protect your credit. Do not open any new loans or credit accounts or make large purchases on current credit accounts. Don’t close any existing account either in the months leading up to the mortgage or during the underwriting process as this could decrease your debt-to-credit ratio and lower your score. What you should do is keeping paying all bills on time and try to pay down your existing balances as much as possible.

While this list is not comprehensive list of mistakes that first-time home buyers make, avoiding these common mistakes will make the home buying process much easier for you.

If you or anyone you know is in the market to buy a home, please contact Cornerstone Equity Group, Inc. today by phone at 702-780-1500 to start the process.

Comments



Leave a Comment

Contact Us


Not readable? Change text.


Cornerstone Mortgage

MAIN OFFICE:
5940 S. Rainbow Blvd., Suite 201
Las Vegas, NV 89118
(702) 840-1500
NMLS ID 340311
NV: DML License: 4814
CA: DOC License: 60DBO86761
CA: DRE License: 01848420

NEVADA:
5940 S. Rainbow Blvd., Suite 201
Las Vegas, NV 89118
(702) 840-1500
NMLS ID 340311
NV: DML License: 4814
CA: DOC License: 60DBO86761
CA: DRE License 01848420

CALIFORNIA:
1500 Standiford Ave., Suite A1
Modesto, CA 95350
(209) 578-9000
NMLS ID: 1741490
CalDRE License: 01848420

200 Tampa St.
Turlock, CA 95382
(209) 633-3222
NMLS ID: 1739798
CalDRE License: 01848420

HAWAII:
91-110 Hanua St., Suite 201
Kapolei, HI 96707
(808) 784-1239
NMLS ID: 1669660
HI: MLOC Liense HI-340311

Legal

Cornerstone Equity Group, Inc., dba Cornerstone Mortgage is an equal opportunity lender.

Nationwide Multistate Licensing System (NMLS) ID: 340311. Additional NMLS branch licenses: 1739798, 1741490, 1669660.

Cornerstone Equity Group, Inc., dba Cornerstone Mortgage is licensed by the Nevada Division of Mortgage Lending, license number 4814.

Cornerstone Equity Group, Inc., dba Cornerstone Mortgage is licensed by the California Department of Corporations under the Residential Mortgage Lending Act and Finance Lenders Law. CA Finance Lender #60DBO86761.

Cornerstone Equity Group, Inc., dba Cornerstone Mortgage is licensed by the California Department of Real Estate, License number 01848420.

Cornerstone Equity Group, Inc., dba Cornerstone Mortgage is licensed as a Mortgage Loan Originator Company by the Hawaii Department of Commerce and Consumer Affairs, license number HI-340311.

Any concerns, complaints or suspicions regarding the misuse of any personal data should be directed to our Operations Manager by telephone at (702) 780-1500 or by email at admin@cornerstone.us.com.