Are you in the market to purchase your first home? Becoming a homeowner, for the first time, is an exciting milestone within your life. You know that buying a home comes with many big decisions and responsibilities, including saving a down payment to place upon your home once your offer is accepted. Colony Title can help you navigate the complex home buying process and avoid these top three mistakes that first time homebuyers should avoid. With over 20 years of experience assisting homebuyers through the homeownership process, we can show you where to begin.
First Time Homebuyers Shouldn’t Start Looking Before Applying for a Mortgage
Before you even begin to start to think about touring houses, you should work with a real estate agent and begin the application process to determine how much of a mortgage you can afford. This can save you from undue heartbreak after touring houses, applying for a mortgage, and learning that the property is outside of your price point. In addition, the ongoing coronavirus pandemic has brought forth a hot housing market unlike any that society has ever seen before. This means that some houses are quickly having offers placed upon them within one day of being listed. If you find your dream home, you’ll want to be pre-approved to have an edge on the competition.
Don’t Skip Owner’s Title Insurance
It’s a huge mistake to skip over the one-time investment of owner’s title insurance. Owner’s title insurance can protect homebuyers from any unforeseen instances in which a title issue may arise that wasn’t apparent during the homebuying process. Owner’s title insurance can provide an extra layer of protection from unknown heirs of your property, outstanding liens, and miscellaneous claims against your new property. Think of owner’s title insurance as a form of protection against any legal claims that argue against your homeownership of your new property.
Don’t Assume You Need a 20% Down Payment
Homebuyers often mistakenly assume that they need a 20% down payment in order to purchase a home. This isn’t always the case. While a 20% down payment can be helpful in order to keep your monthly mortgage rate lower, it’s not a reasonable or affordable option for most homeowners. In addition, many first time homebuyers qualify for special housing options that can lower your necessary down payment.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, and LinkedIn.