The 14 Costliest Home-Buying Mistakes
Buying a new home is as exciting as it is nerve-racking; you long for your dream home where you’ll grow your family, but you don’t want to make any costly mistakes along the way. Here are the top ones to avoid.
Being afraid to ask questions
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Sometimes homebuyers are shy about asking simple questions during the home-buying process because they are afraid of sounding stupid. But this is such an important decision, you need to ask as many questions as you want; after all your agent is being paid to help you find the right home t the best price. These are 15 questions everyone should ask before buying their first home.
Only checking with one bank or online mortgage lender
When you are financing a large sum over 15 to 30 years, half a percentage point on your interest rate makes a big difference. “Check with local credit unions, as they tend to offer some of the best consumer rates, since they don’t play by the same rules as bigger box banks do,” says Ryan Fisher, president, White Coat Wealth Management. He also recommends online mortgage companies like Rocket Mortgage by Quicken Loans.
Not researching closing costs
You will need more than just a down payment in cash to buy a home. Many homebuyers, particularly first-time homebuyers, are surprised when they learn about the additional closing costs they will have to pay before signing on the dotted line. Depending on where you live, you could be responsible for mortgage fees, title insurance fees, state and local transfer taxes, and more. Follow our 10-step plan and you’ll be ready to buy your first home in five years.