Buying a first home can be a daunting experience. Here are five common and
costly mistakes that novice home buyers make:1. Ignoring the costs of having a low credit score. Lower-score borrowers
pay thousands of dollars in increased interest rates over the life of the
loan.
2. Muddying the waters by shopping for other things before closing. Lenders
continue to check credit scores right up until the time of closing. Too much
shopping could cause the lender to take back the loan.
3. Scrimping on an inspection. Being surprised by the need for expensive
repairs can be financially devastating.
4. Buying without contingencies. Buyers should give themselves an out if the
inspection turns up problems or the bank raises the interest rates.
5. No money for insurance. Insurance can be surprisingly pricey. Buyers who
don't budget for it can face a nasty surprise.Source: CNNMoney.com, Les Christie (04/19/2010)
costly mistakes that novice home buyers make:1. Ignoring the costs of having a low credit score. Lower-score borrowers
pay thousands of dollars in increased interest rates over the life of the
loan.
2. Muddying the waters by shopping for other things before closing. Lenders
continue to check credit scores right up until the time of closing. Too much
shopping could cause the lender to take back the loan.
3. Scrimping on an inspection. Being surprised by the need for expensive
repairs can be financially devastating.
4. Buying without contingencies. Buyers should give themselves an out if the
inspection turns up problems or the bank raises the interest rates.
5. No money for insurance. Insurance can be surprisingly pricey. Buyers who
don't budget for it can face a nasty surprise.Source: CNNMoney.com, Les Christie (04/19/2010)
via Ping.fm
No comments:
Post a Comment