By Jason Gelios REALTOR®
1. Ignoring the true cost of owning a home
Owning a home comes with some additional costs that must be taken into consideration. Things such as energy costs, regular maintenance and replacing old appliances need to be know before you purchase.
2. Making yourself house-poor
Just because your lender approves you for a certain amount does not mean you should max out your budget. Have a plan in place and know how much you can afford wiht a little cushion in case of emergencies.
3. Not shopping around for the best rate and option.
Not getting the best loan and rate could cost you a ton of money. Know what is out there and also what type of loan you should be in. Take the time to look at different financing options.
4. Ignoring APR (Annual Percentage Rate)
Many lenders will advertise a lower rate but then hit you up in fees on the back end. Make sure you not only look at what rate you re being offered but also what the APR is.
5. Not putting enough money down
Not putting enough money down on a home can cost you extra. Things such as PMI (Private Mortgage Insurance) can affect your payment. Make sure you are putting enough down on your next home.
6. Not knowing what is on your credit report and fixing it
Always make sure you obtain a copy of your credit reports annually to make sure everything is good. Having to fix an error on your credit report can take a long time. If your purchasing a home that can stall or even stop the purchase in it’s tracks.
7. Not looking into specialized programs such as VA loans
If you are a veteran and you don’t look into a VA loan you could be missing out. Specialized loans for certain qualified people are available so be sure to look into these programs.
These are the top 7 mortage mistakes to avoid.
Jason Gelios is a Husband and Father. After that, a Top Producing REALTOR®, Author of the book Think like a REALTOR®, Creator of The AskJasonGelios Real Estate Show and an Expert Media contributor.