I recently got done working with a couple whom purchased a home for the very first time. In this business we often refer to these people as FTHB or First Time Home Buyer's. I love to work with first time home buyers, it's a real joy to be the lender who had a part in making their dreams come true.
Now because I work with FTHB's I want to try to help any of you out there avoid some mistakes that can have an impact on your ability to secure financing. Often times it is best to work with a lender whom was referred to you from a friend or trusted colleague. Make sure that whomever you work with has experience in working with FTHB's. There are a few things that people who are accustom to working with refinance and repeat clients forget to mention. Sometimes Mortgage Professionals whom work with experienced home buyers or investors forget to slow down and explain things from the begining.
Here are some of the pitfalls:
- Taxes that are due on the property are all due at closing.
- If you are borrowing more than 80% of the value of the home you will be required to pay PMI (private mortgage insurance) which can be quite costly. It is the responsibility of the lender to inform you of this.
- The required Home Owners insurance policy needs to be paid a year in advance and proof needs to be supplied at closing.
- If you figure that you have a certain percentage of a down payment before you've spoken to a Mortgage Professional be prepared to use some of that down payment to cover closing costs.
- A great tool that will allow you to cover much of and sometimes even all of the closing costs are Sellers Concessions. Sellers Concessions allow you to gross up the contract 3%-6% above the accepted purchase offer with that 3%-6% coming back to cover closing costs.
- If you are quoted a rate and decide not to lock be aware of the fact that regardless of what the lender says, if the rates not locked, its not written in stone.
- I guess the best piece of advice that I can give is; make sure that you are working with a professional. There are many unethical people out there that love to take advantage of people. Stay away from them.
If you are considering a home purchase in NYS, RI, or MA I'd be happy to provide you with a no-strings-attatched consultation. I am a Mortgage Professional at Lake City Mortgage in Plattsburgh, NY 12901. Our Motto is "We work for referrals" which is very true. When you give everyone a great deal you may make less per loan file, but you do more loan files. Simply math.
Christopher Ohslen |1-866-562-6930 ext.104 | http://www.mortgageny.net/
37 Boynton Ave
(845) 243-5293 (Office)
(518) 565-0799 (Cell)