The great thing about becoming a homeowner in Central Ohio is that many have come before you! You can learn from their mistakes so that you avoid making them altogether. As you Exclusive Buyer’s Agency, we are here to fill you in on some of the most common mortgage makes that first-time buyers make. By avoiding these, you could save yourself heartache and a lot of money in the long run!
1. Don’t begin your home search before finding your mortgage. Talk to a mortgage lender three months to a year before you plan to buy. Have a pre-approval in hand before seriously beginning your search. This will allow you to know exactly what budget to search in, and you will be a better candidate in the eyes of sellers. If you make a bid over what you can afford, this could cost you tens of thousands of dollars over the life of a loan.
2. Don’t skip the process of comparing loans. First-time buyers may focus only on a low interest rate and not take the cost of fees into account. When comparing loans, compare them by the annual percentage rate, or APR, not just by interest rate. If your lender doesn’t provide you with the APR in the loan estimate, find a different lender! This will help you understand exactly what you’ll be paying over the life of a loan, and by comparing and choosing the best options, you could again save thousands.
3. Don’t fall for marketing gimmicks from lenders. Mortgage lenders may try to get you into their doors by offering a deal you can’t refuse, like paying your mortgage insurance or paying your closing costs. Don’t believe them. Mortgage experts say that lender always make up for the deals they make, so if you’re not paying for one thing, you’re making up for it in your interest rate. This adds up quickly if your interest rate is higher than it should be.
4. Don’t take the highest loan offered to you. A mortgage lender may offer you the highest loan that you can technically handle, but that doesn’t mean you should accept and then buy the most expensive Central Ohio home you can! You have to budget in the rest of your life, such as what you spend disposable income on. What are your passions and hobbies? Do you enjoy going to the gym or taking yoga classes? Do you love your morning coffees or happy hour drinks? Track your monthly spending and factor this in when choosing a mortgage loan.
It’s important to shop around, to read through all of the documents you receive, however daunting it may seem, and to speak up with questions or concerns. As your Exclusive Buyer’s Agents, we can recommend some local lenders and help answer any of the home-buying questions you may have.
As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax