CNNMoney.com's Les Christie has listed five common and costly mistakes first-time buyers make:
- 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.
- 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.
- Scrimping on an inspection. Being surprised by the need for expensive repairs can be financially devastating.
- Buying without contingencies. Buyers should give themselves an out if the inspection turns up problems or the bank raises the interest rates.
- No money for insurance. Insurance can be surprisingly pricey. Buyers who don’t budget for it can face a nasty surprise.
BUYERS TIP
Home Buyers can now push for lower closings costs!
Closing costs (lending charges, local tax & transfer fees, title insurance, appraisal costs and other 3rd party services) are typically 3% of the cost of the property. According to Guy Cecala, publisher of Inside Mortgage Finance, most buyers should be able to do better than the 3% standard. Wire transfer fees, loan application-processing fees and high FedEx charges are some fees buyers shouldn't have much trouble negotiating.
MORTGAGE RATES
Freddie Mac reported:
- 30 year fixed stayed flat averaging 5.07%
- 15 year fixed loans down to 4.39% from 4.4% last week
- 5 year hybrid adjustable-rate mortgage averaged 4.03% down from 4.08%
- 1 year ARMS rose to 4.22% from last weeks 4.13%
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SEE YOU AROUND THE NEIGHBORHOOD!!!
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