According to Joseph Allaham, what are the 5 deals to avoid when you purchase a home?

_{Are you thinking regarding purchasing a home? Before you unlock the option to own a home, just go through this blog and enlighten yourself with Joseph Allaham’s point of view. From the process of finding out the feasible location to financing your effective buys, going for a shopping thrill for your new home offers you with various challenges which can go more beyond and curb the interior features and appeals.}

_{Few of the essential steps for owning a home are:}

_{•    Getting your mortgage approved.}

_{•    Selecting the correct real estate agents.}

_{•    Figuring out the correct house which suits your budget.}

_{Listed below are the most common errors which the first time homebuyers must certainly avoid:}

_{1. It has more to it just than the payment of the mortgage:}

_{Most of the first time buyers of home decide to purchase when they are ready for the mortgage. However, just as they can make the payment of the mortgage does not mean that they can afford a home. Joseph Allaham says, “The people do have an idea regarding what their mortgage payment might be, but they do not realize that there is much more to this”. If you know that you can afford the payment of the home. Then you must begin for shopping spree today for the mortgage.}

_{The taxes, property insurance, association, maintenance, water bills and higher electric are few of the costs which the first time buyers of the home generally tend to overlook when they head out to shop a home.}

_{Joseph Allaham   says that “you must keep in your mind that the insurance and the property taxes generally have the tendency of rising high each and every year.’’ Even if you think that you can afford it, you must ask yourself that if whether you will be able to handle the increased costs later onwards.’’}

_{2. Look for a home first and then loan later:}

_{The act of purchasing a home does not start with the tactic of home searching. It starts with the prequalification for a mortgage – unless and until you are fortunate enough to have sufficient money to pay for your first home.}

_{Often times, the first time buyers of the home are generally afraid to avail prequalification. They generally fear that the lender might tell them that they do not qualify for the mortgage or qualify for the loan which is smaller than actually expected. Therefore, they pick up the range of price out of the sky and then head for a home search.}

_{That is not exactly how it must be performed. Yes, it is kind of more fun to look at the home than to burn your back at the lender’s office where you are supposed to reveal your financial status. However, that is a backward approach, says Joseph Allaham.}

_{3. Not going expert assistance:}

_{Are you new to the home purchasing game? If yes, then you require reputable real estate professionals, a satisfactory broker or loan officer and perhaps a good lawyer. Going into the loan process alone without the assistance of professionals is definitely not a great idea. While each and every rule reveals its own exceptions, generally the first time buyers of the home must try and directly deal with the agencies concerned with the listing.}

_{Like, if you are getting a divorce, will you demand the attorney of a husband for assistance? Of course not. If you make your way straight to the listing agent, they will only reveal you their listings. You must search for the buyer’s agent to assist you.}

_{If you hire the agent without any referral from the family or friends, you must ask for the agent to cater you with preferences from the previous homebuyers. The same is the case with the mortgage brokers or loan officers.}

_{It is certainly very difficult for the first time buyers as they do not have an idea of whom they are dealing with. Therefore in such cases, it is crucial enough to find an expert who can endow you with a completely independent decision. It might sometimes mean hiring just a lawyer for assistance.}

_{4. Utilizing up the savings on down payment:}

_{Making your expenditure on all or on most of the savings on down payment and closing costs is said to be the biggest errors for the first time buyers of the home. Few people scrape all of their money together making about twenty percent down payment so that they do not have to make the payment for the mortgage insurance. However, they pick the wrong poison as they are left with no savings at all.}

_{The buyers of the home who put in twenty percent of the down payment or more do have to make the payment for the mortgage insurance when availing a conventional mortgage. This is generally translated into considerable saving on a monthly payment of the mortgage. But it is certainly not worth the risk that you will require living on the basic edge.}

_{Any smart buyer would opt to take mortgage insurance any day rather than not having any money for the rainy days or bad times. Everyone, generally the homeowners must have the fund for a rainy day. If you gave require mortgage but do not have much for the down payment? Then you must search for the low down payment mortgage today.}

_{5. Availing the new loans before deals are closed:}

_{Think this way; you have prequalified for the loan. You got the home you wanted for yourself. The home contract is signed and the final closing of the same is within thirty days. Do not celebrate byways of financing another bigger purchase. Lenders generally pull out your credit reports before they can actually close the contract to make sure that the financial situation of the borrowers has not at all changed since the approval of the loan. Any of the new loans on credit report can completely jeopardize the closing of the contract.}

_{The homebuyers, generally the first-timers, often times learn the lesson the difficult way around.}

_{“They sign a contract and go out to purchase the new furniture for the home or a new car,”}

Joseph Allaham founded the Allaham Consultancy to meet the growing needs in the real estate sector in the USA.