Buying a home takes a lot of work, especially when it’s your first time doing so. When people buy homes for the first time, they may make common legal mistakes that can cost them money, such as not hiring a mortgage lawyer. Read on to learn more about what these common mistakes are so you can avoid them.
1. Not Understanding What They Can Afford
Your home is likely the most expensive thing you’ll buy in your lifetime. So when you get a mortgage, you should ensure that you’re getting one you can afford to pay off monthly. Otherwise, you may be setting yourself up for financial ruin.
2. Not Getting More Than One Quote
As any good mortgage lawyer will tell you, you should get more than one quote for your mortgage. Oftentimes, first-time home buyers will go with the first quote they hear, not understanding they should make comparisons in terms of interest rates and pay-off terms.
3. Forgetting to Check Credit Score
Your credit score plays a huge role in your mortgage. The higher your credit score is, the better interest rates you’ll have. You’ll also qualify for more loans and have better financing options for your home. In addition to checking your credit score, check the full credit report for any inaccuracies you should clear up.
4. Not Checking For Special Programs
According to the National Association of Realtors, approximately 26% of homebuyers are people buying for the first time. As a first-time home buyer, some programs are made with you in mind, such as the Federal Housing Administration (FHA) loan program. These first-time home buyer programs can often come with a lower interest rate of around 3.5% and take credit scores as low as 580, according to Zillow. Plus, if you’re a veteran, you can also get loans from the VA that won’t require you to make a down payment on your mortgage.
Take the time to understand your rights as a home buyer. Making the above legal mistakes can cost you a lot in terms of time and money. Always do your research before you invest in your first home and don’t be afraid to hire legal professionals who can help you. Looking for a New Jersey real estate lawyer? Contact The Law Office of Lawrence M. Centanni today to get started with our services.
