Thursday, May 27, 2010

The Biggest First-Time Buying Errors

According to one advisor the six biggest mistakes made by many first time home buyers are:

  1. Not taking care of their credit score. This can make a very significant difference to the interest rate a borrower is charged.
  2. Making a big purchase just before or during a mortgage application. This will almost certainly be reflected in your credit score.
  3. Not having a proper inspection done before the purchase. Missing a serious problem with the house can cost thousands - if not now, then when you go to sell the house.
  4. Not having an experienced real estate attorney on your side. An attorney is objective. Everyone else wants to push the deal through as quickly as possible.
  5. Not including the proper escape clauses in the initial contract. If you are not careful you could lose your deposit when things go wrong.
  6. Not budgeting enough for insurance. In some cases special insurance such as flood insurance can cost thousands more than just basic insurance.

Source: CNNMoney.com

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