5 Rookie Home Buying Mistakes To Avoid

Buying your first home is a big undertaking, and not something that should be attempted without the guidance of multiple experienced professionals on your side. In order to ensure your home buying experience is a success, you'll likely need the help of a real estate agent, title insurance agent, mortgage lender, and several other professionals (such as an inspector and an appraiser). Arrowhead Title, Inc. is here to help ensure the process goes smoothly by making you aware of these common first-time homebuyer mistakes. 




1. Searching For A Home Before Shopping Mortgage Loans
Most first-time homebuyers (especially millennial buyers) begin the process by searching for available homes online. Once they find a few that pique their interest, they'll probably contact a real estate agent to schedule a showing. However, there is a crucially important step that should be taken long before the first home showing: prequalification (or, better yet, pre-approval) for a mortgage loan. Buyers have to be prequalified in order to get a realistic picture of their potential price range. Being prequalified or pre-approved can also help the process go much more smoothly once they actually get to the negotiation stage.

2. Opting Out Of The Owner's Title Policy
Homebuyers have the opportunity to purchase two types of title policies when they buy a home, but technically, only one of them (the lender's title policy) is required. Some first-time buyers attempt to save a little money by opting out of the owner's title policy. However, it is the owner's policy that will protect you in the event that an unforeseen hazard arises and threatens your right to ownership of your property. While we hope that these types of hazards will never arise, neglecting to buy an owner's title policy can become a costly mistake under certain circumstances.



3. Neglecting To Consider ALL Of The Costs
A home's asking price is only part of the equation. Based on your credit score and overall financial situation, your lender will inform you what interest rate you can qualify for, but that is also only a small piece of the overall equation. In order to purchase your new home, you will have to cover multiple other costs such as the inspection, the appraisal, and closing costs. After the home is officially yours, you will have to cover the costs of your mortgage payment, insurance, property taxes, utilities, maintenance, and any desired upgrades. Make sure you leave room in your budget to accommodate these added costs.



4. Opening New Lines Of Credit Before Closing
Applying for a mortgage loan is an in-depth process with many details that need attending to. What many first-time buyers fail to realize is that a shift in their financial positions could disrupt the process and bring them back to ground zero. If you are in the process of applying for a mortgage loan, it is very important that you do not make any major purchases, open new credit cards, or take out new loans. Even if you have already been officially pre-approved, opening a new line of credit can cause the entire process to have to start over.

5. Attempting To Do It All Yourself
There's a lot that goes into buying a home at the Lake of the Ozarks. If you are hoping to join the ranks of happy homeowners, it's important to seek the professional assistance you need to ensure your transaction is a success. When you are ready to contact a title insurance agency at the Lake of the Ozarks, we hope you'll remember Arrowhead Title, Inc. We have been proudly serving the Lake Area since 1984, and we would be honored to help you with your home purchase!

The Lake of the Ozarks' Most Trusted Title Company
Where Accuracy Matters!


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750 Bagnell Dam Blvd Suite B
Lake Ozark, MO 65049

Comments

  1. Buying a first home is the risky task for everyone. The small mistake you have done will affects you more. Great post.
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  2. Thank you very much for writing this blog. It was very easy to understand. Now i know the details about home and what are the mistakes to be avoided before buying homes.
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