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5 Reasons First-Time Home Buyers Hated Their Experience

January 31, 2022

5 Reasons First-Time Home Buyers Hated Their Experience

Buying your first home should be a happy, exciting experience, but unfortunately, that’s not the case for many people. While there are some parts of homebuying that are less fun than others, your overall experience should be a positive one. At The Mortgage Firm North Central Florida, we put our years of knowledge and expertise to work for you. Read on to learn what we’ve come to know as some of the most common pitfalls first-time homebuyers have experienced and what you can do to avoid them. 

Common First-Time Home Buying Mistakes

  • Not Asking the Right Questions 

One of the biggest mistakes first-time homebuyers make is not asking the right questions from the beginning. They may think the only important question is “How much home can I afford?” when in reality, they should also ask:

  • What will my monthly mortgage payment be?
  • What type of loan will work best for me?
  • Can you advise me based on what I plan to do with the house and how long I will stay there? 

Traditional lenders may not ask these important questions, which is why it’s essential to work with a mortgage lender who will provide personalized service and insight. 

  • Not Shopping Around for Professionals

Another common error is not shopping around for the best realtor and mortgage lender and forgetting to read reviews from previous clients and business partners. Selecting these professionals based solely on their fees can cause you to end up with a realtor and mortgage lender who don’t care about your needs, who have terrible communication skills, and rush you through the entire process. The solution is to talk to a few different lenders and realtors — you need to get to know the kind of people they are before you make perhaps the largest purchase of your life.

  • Not Doing Enough Research

Similar to the preceding point, another error is not doing enough research to find your home buying team. Often, homebuyers learn too late that the professionals they choose to work with have a negative reputation in the community. When you buy a home, there are generally 30 people involved in the transaction, so when choosing who to work with, you should ensure they have positive relationships with all of those people. If they don’t, it could easily lead to communication breakdowns and avoidable delays before you take ownership of your new home. 

  • Taking the Wrong Advice

Another mistake that can lead to a miserable homebuying experience is taking bad advice — usually from someone other than a loan professional — about which loan fits your needs the best. A reputable mortgage lender should fully explain available loan options to you from the following. 

  • Conventional. This loan type is best for borrowers with good credit, balanced income, and debt, and looking to purchase a primary, second, or investment property.
    • 3% & 5% Down Payment Options
    • $647,200 Max Loan Amount (no limit on the purchase price as long as maximum loan amount and down payment requirements are met)
    • 620 Minimum Credit Score 
    • Private Mortgage Insurance (PMI) is required for less than 20% down

 

  • FHA. This loan is insured by the Federal Housing Administration and is often the best choice for homebuyers needing extra flexibility when qualifying for a new home mortgage due to lower credit scores or higher debt ratios.
    • 3.5% Down Payment
    • $420,680 Max Loan Amount (no limit on the purchase price as long as maximum loan amount and down payment requirements are met)
    • 600 Minimum Credit Score
    • Mortgage Insurance is required for the life of the loan

 

  • VA. The Department of Veterans Affairs finances primary residences for retired and active military. 
    • 0% Down Payment
    • $647,200 Max Loan Amount (no limit on the purchase price as long as maximum loan amount and down payment requirements are met)
    • No monthly mortgage insurance

 

  • USDA. The US Department of Agriculture offers qualified buyers no down payment options when looking to purchase a home in rural areas. 
    • 0% Down Payment
    • Income and Property location restrictions
    • 640 Minimum Credit Score

 

  • Conventional & FHA Rehab. This loan allows you to incorporate the cost of rehab with the purchase or refinance of a home with a Conventional or FHA loan. A Florida licensed General Contractor is required.
    • 5% Down Payment for Conventional, 3.5% Down Payment for FHA
    • Purchase and Refinance
    • For primary, second home, and investment

 

  • Construction to Perm. This type of loan can be used to finance the cost of purchasing land, building a home on the purchased land, and then serve as the mortgage for that home once the build is complete. Conventional and VA loans are available currently for construction loans. This is a one-time close loan that goes into its permanent loan once construction is completed.
    • 5% Down Payment
    • $647,200 Max Loan Amount (no limit on the purchase price as long as maximum loan amount and down payment requirements are met)
    • Extended rate locks available, build your dream home

 

  • Other loan types.
    • Jumbo Loans for loan amounts above $647,200
    • 12 Month Business Bank Statement
    • Doctor Loans – 100% financing up $850,000
    • Bridge Loans

  • They Underestimated the Importance of Relationship Building

While you don’t need to become best friends with your home buying team members, you want them to recognize the importance of relationship building. You should feel comfortable asking any questions you may have and knowing they have the patience to answer you. Buying a home is one of the most significant investments you will ever make in your lifetime, so your home buying professionals should also be willing to educate you on each part of the process. 

Another critical component of relationship building is open and transparent communication. Your mortgage lender should always be willing to respond to your calls and messages promptly and should be patient in explaining the process’s steps to you. 

You’ll Never Regret Partnering With Us

When you trust the knowledgeable team at TMFNCF, you’re putting your first-time home buying experience in the best possible hands. We are committed to serving you with open communication and transparency, so you can avoid the nasty surprises about your mortgage payment or any other part of the home buying process. When you’re ready to truly enjoy buying your first dream home, contact the best home-buying team in the Ocala and Gainesville area.