'You can play with mortgage calculators online, but they don't know your credit or how much debt you're in.' Erin Lantz, VP of mortgages at Zillow, has seen many first-timers overlook budgeting in closing costs, which can run anywhere from 2-4 percent of the purchase price. 'Don't assume you can afford what you think you can afford,' he warns. 'Some people make assumptions about what they can afford, which can get them into trouble later on.' You underestimate the costAnother huge mistake Milestone witnesses among first-time buyers is underestimating just much how they'll have to pay. He advises home buyers to talk to a lender before starting the process or contacting a realtor: 'In order to submit for a property, you need a pre-approval letter,' he says. Nelson asks: 'If you need a three-bedroom ranch and can qualify for $200,000, are there homes in areas you would live in for that price''You're skipping stepsOne of the most common errors Bay Area realtor Ed Milestone often sees is that potential buyers get so excited, they overlook important details - even though it's likely to be one of the biggest purchases they'll ever make.'When I first meet first-time home buyers, they're usually so excited to get started that they'll skip steps,' Milestone says. Nelson suggests identifying clear housing goals at the beginning of your search, and researching desired neighborhoods to start off on the right foot. But are you ready for all that responsibility' Larry Nelson, president and co-owner of Cornerstone Realty, says rookie home buyers often fail to identify and qualify for a source of down payment, start searching before they're completely pre-approved for financing, and may have unrealistic expectations.
QUICKEN LOANS MORTGAGE CALCULATOR HOW TO
We give you the 10 mistakes people commonly make when starting their home search.and most importantly, how to avoid them.You're actually nowhere near preparedSure, you may love the idea of being a homeowner. Studies show that only majorly depressing life events - think death of a family member, losing a job or getting a divorce - outweigh the stressful demands of moving.Since an estimated 43 million Americans relocate each year, we've partnered with Quicken Loans to help make your search for your first home a little bit easier.