The buyer should also make it a point of being involved. Real estate agents have a complicated job in getting their clients the best deal. Therefore, as a buyer, you should also make efforts to ensure you’re also part of the whole process and that you’re involved in every step of the deal. Research has shown that most people spend more time shopping for cars than they spend thinking about mortgages. As a result, many people seeking to buy homes end up paying more in closing costs, or a higher interest rate than they might have because they didn’t bother doing enough research or they didn’t adequately shop the mortgage market. The real estate mortgage interest rates can move up and down quickly, due to various financial and market factors. The ever-changing rates can confuse almost anyone, and timing is important. For instance, one day, the rate might be 5% and the following day it could rise to 6%. Be sure to follow your chosen lender's advice and lock-in your interest rate when they advise you to. (It is always your choice, but if rates are rising, try to lock-in a rate.) Many people overlook the shopping aspect and tend to approach a single lender. As a result, these people will probably get their “dream” home, but it may come with a substantially higher monthly mortgage payment than if appropriate and adequate research had been done. Another mistake is "waiting for rates to drop" before buying a home. Remember, renting is expensive and you are essentially paying your landlord's mortgage and giving them a tax break. When possible, buy a home to invest in yourself! Take a look at the graphics below...it is eyeopening! Not only will your home gain equity (most likely) over the years, you are not paying out rent to someone else with no personal financial gain.
72
Powered by FlippingBook