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My First Place: Lessons Learned
Seven My First Place homebuyers admit their biggest rookie blunders and reveal recession-proof lessons to guarantee home buying success
By FrontDoor.com | Published: 10/20/2009
Before house hunting, get pre-approved for a loan so you can make an offer with confidence as soon as you find the perfect home.
Lesson #14: Secure financing before falling in love with a house
Clarence Hawkins and his girlfriend Angie were very excited to purchase their first home. So excited, in fact, that they made the mistake of house hunting before locking down a mortgage, thinking it would take awhile to find the "perfect house." They fell in love with a house in their agreed-upon price range, but were left without solid financing when signing the contract. In the end, securing a loan took longer than expected, and Clarence and Angie lost the house they had such high hopes for. By taking the time to get financing in order before you start house hunting, the whole process can run smoother and you won't be living in fear of losing a house you love.
Learn More: Understanding the Pre-Approval Process >>
Clarence Hawkins and his girlfriend Angie were very excited to purchase their first home. So excited, in fact, that they made the mistake of house hunting before locking down a mortgage, thinking it would take awhile to find the "perfect house." They fell in love with a house in their agreed-upon price range, but were left without solid financing when signing the contract. In the end, securing a loan took longer than expected, and Clarence and Angie lost the house they had such high hopes for. By taking the time to get financing in order before you start house hunting, the whole process can run smoother and you won't be living in fear of losing a house you love.
Learn More: Understanding the Pre-Approval Process >>
Lesson #15: Don't spend every dollar you qualify for
Clarence and Angie were willing to come down in their price range, and as a result were able to open up their options to a larger chunk of the market. With financing already secured, they found another great house with ease and were able to spend more on decorating and upgrades. Coming down in price also allowed Clarence and Angie to save more each month and lock in a better interest rate. By not spending every bit you qualify for, you can open yourself up to more options and better possibilities.
Learn More: Figure Out Your Financial Strategy >>
Lesson #16: Find smart money
Clarence and Angie found their "smart money" by getting a loan through a non-profit organization that had agreements with several lenders to give first-time homebuyers affordable loans. These kinds of opportunities are out there; you just have to look for them. Remember, you still have to be underwritten by the lenders, so be prepared to show your credit history and attend classes and workshops the non-profit group organizes.
Learn More: Federal and State Home-Buying Programs >>
<< Lessons 11-13 I Lessons 17-20 >>
Keywords: home, house, real estate, buy a home, first-time homebuyers, My First Place, HGTV, tips, advice, inspection, down payment, offers, neighborhood, financing, loan, mortgage, home improvement, renovation