Lending and Mortgage Errors May Buy First Time Home Buyers in the Southern Ocean County Real Estate Market
Buying your first home is an exciting experience. It can also be a very scary experience. For many first-time homebuyers, a real estate transaction will be the single biggest investment ever made, so it is important to understand all aspects of the transaction. Sadly, there are some common first time home buyer mortgage mistakes in Southern Ocean County real estate market that can be easily avoided. These mistakes can end up costing a great deal of money so knowing what to look for is wise before ever entering into a transaction.
Common First Time Home Buyer Mortgage Mistakes in the Southern Ocean County Real Estate Market
There are a few areas any first-time homebuyer seeking a mortgage should watch out for. They are:
- The interest rate charged on the loan
- The fees charged by a lender
- The terms of the transaction
The interest rate charged on a loan is above all else the number that should be focused on. This interest rate will directly determine your monthly payment and it benefits any buyer to see that number be as low as possible. The interest rate is determined by a number of factors, two of which are your current debt limits and credit scores. For some first-time homebuyers, it may be better to wait on buying a home and instead focus on raising your credit score and lowering your debt to obtain a lower interest rate. If the home is held for a long period of time, even small changes in the interest rate can point to thousands of dollars over time. The fees charged by lender are the next important number to focus on. Lenders will charge a number of fees such as origination fees, locking fees, and other charges. These fees should be questioned and investigated to ensure that your closing costs are as low as possible. Lastly, understanding the terms of the transaction is essential. It is important to understand the length of your loan, if there are any penalties for refinancing or paying off early, and get this is a fixed or adjustable rate loan. And a reputable lender should have no problem answering your questions and taking the time to explain the mortgage process.
Buying Your First Home in the Southern Ocean County Real Estate Market
Buying your first home should be a fun and exciting experience. It is important for team real estate agents to understand the local market and have the proper contacts to ensure a smooth transaction. We have lived and worked in the Southern Ocean County real estate market for many years and would be our pleasure to help you purchase your first home. For more information about common first-time home buyer mortgage mistakes in Southern Ocean County real estate market, or to learn more about buying a home, contact us and we will respond right away.
The Beach Haven West Real Estate Group and Southern Ocean County Real Estate Specialists