Buying your first home is a wonderful experience, but it can also create a great deal of stress and anxiety. Many first-time homebuyers make some common mistakes, primarily because the process has so many moving parts that make it hard to do everything correctly. There are some missteps that new homebuyers in Louisiana can easily avoid to make the process smoother.
Failure to shop for a better mortgage
Lots of first-time homebuyers go to the bank where they have an account, speak to a loan officer and assume the mortgage rate they receive is the only one they can get. However, you have the right to go to multiple lenders and get mortgage quotes. Different lending institutions regularly offer different mortgage rates, so you should educate yourself about all of them.
Picking a home before shopping for a mortgage
Until you know how much you can borrow from a mortgage company, you really shouldn’t be shopping for a home. It’s easy to look at homes online, view those that are for sale with a real estate agent and fall in love with one. But it’s heartbreaking to find out that you aren’t approved for a mortgage that will cover the cost of the home you choose.
Know the true cost of home ownership
Your mortgage officer will tell you how much you can borrow, but that doesn’t mean you should buy a house that costs that amount. Knowing how much home you can afford is paramount for first-time buyers. You should figure in the cost of maintenance, taxes, any homeowners’ association fees and other costs that you will be required to pay every month for your real estate.
Buying a home is a legal process. While working with a real estate agent is an important move, you should also consider employing the service of an attorney who knows your state’s real estate laws.