Are You Wondering What It Takes To Buy Your First Home?

There are many people sitting on the sidelines trying to decide if they should purchase a home or sign a rental lease. Some might wonder if it makes sense to purchase a house before they are married and have a family. Others may think they are too young. And still others might think their current income would never enable them to qualify for a mortgage. We want to share what the typical first time homebuyer actually looks like based on the National Association of REALTORS most recent Profile of Home Buyers & Sellers. Here are some interesting revelations on the first time buyer:

Bottom Line

You may not be much different than many people who have already purchased their first home. Meet with a local real estate professional today who can help determine if your dream home is within your grasp.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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Keep Your Eye Out During the Home Inspection

Home inspectors are good at their jobs but they are not above missing some things because they are human.   There are several things that home inspectors have been known to miss during a home inspection so you might want to keep your eyes open and pay close attention during the inspection so that you don’t end up having to pay for expensive repairs once you move in to your new home.  A few things that may be missed by your home inspector are below.

• Inspectors do not always go over all the bells and whistles of a home and appliances are on the list of things they do not always pay a lot of attention to. The last thing you want is to move into your new home to find out that you have a leaky dishwasher that needs to be replaced. If you want to make sure appliances have not been overlooked you may want to check them yourself.
• Leaky faucets are also things that can be overlooked by home Take your time to walk through your soon to be new home and check the faucets for leaks just in case your inspector may have missed something.  It’s a good idea to check outdoor faucets as well.
• Cracked sewage and drainage pipes might also be something that your inspector doesn’t take a look at and may therefore miss. It may be worth your while to pay a bit of extra money to have an in depth look at your drainage pipes.
• Sometimes home inspectors will not pay a lot of attention to decks, porches and balconies. There can be problems in these areas such as safety issues and cracks that may not arise until right before you make the purchase of the home. Perhaps a second follow up inspection may be a good idea if you feel that one of these areas may be a potential problem.

Again, home inspectors are human and they are not above missing some potential problems with your new home. Realize this fact before you have your home inspection so that you too can keep your eyes open for any potential problems you see in and around your prospective new home. Once you move in you will be able to rest assured that you have not bought into a money pit.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

Helping Your Child with Their First Home Purchase

Still searching for the ideal holiday gift for your adult child? How about helping your child with their first home purchase? Hopefully your child already has a job lined up so that they can afford to pay for their new home once you have helped them to achieve the goal of home ownership, if not you may want to postpone this plan until they do.

• Many kids just out of college have a huge student debt that has accumulated over the last four years but that doesn’t have to stop them from owning their own home. Parents can help their children be able to purchase their own home and to come up with the down payment by gifting the down payment to them. Make sure that you do not loan them the money because that can work against them in the long run, rather give them the down payment as a gift. This type of gift is much better than any house warming gift you could ever give them and it’s the gift that will keep on giving. You will need to write a “gift letter” so that the lender realizes that the money is in fact a gift and not a loan.
• If you simply cannot afford to gift the money for the down payment to your child then you can give them a loan but the lender will have guidelines that you must follow. The lender will consider the loan a second mortgage on the house and you may also be prepared to have interest in the loan as well. The interest rate will most likely be the current market rate.
• You can apply for a mortgage jointly with your child if you want to help out in that way. You will be considered a non-occupant co-borrower. If however your child fails to pay the mortgage, guess who will be responsible for it? Yes, you. This type of help towards a home purchase should only be done as a last resort.
• You may want to choose to let your recent graduate move back home with you until he or she can afford to take on a home mortgage without having to have help from you. By letting them move back in you are allowing them to be able to save money towards a home purchase and that in itself is a huge help in the right direction.

Hopefully this gives you a few ideas on how to help your child afford to purchase a home of their own.
Courtesy of Orlando Realtor Teri Isner.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

Slaying Myths About Buying A Home

Some Highlights:

• Interest Rates are still below historic numbers.
• 88% of property managers raised their rent in the last 12 months!
• Credit score requirements to be approved for a mortgage continue to fall. The 723 average score is the lowest since Ellie Mae began reporting on scores in August 2011.
• The average first-time home buyer down payment was 6% in 2015 according to NAR.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

Items Your Home Inspector Might Miss During a Home Inspection

Home inspectors are good at their jobs but they are not above missing some things because they are human.   There are several things that home inspectors have been known to miss during a home inspection so you might want to keep your eyes open and pay close attention during the inspection so that you don’t end up having to pay for expensive repairs once you move in to your new home.  A few things that may be missed by your home inspector are below.

• Inspectors do not always go over all the bells and whistles of a home and appliances are on the list of things they do not always pay a lot of attention to. The last thing you want is to move into your new home to find out that you have a leaky dishwasher that needs to be replaced. If you want to make sure appliances have not been overlooked you may want to check them yourself.
• Leaky faucets are also things that can be overlooked by home Take your time to walk through your soon to be new home and check the faucets for leaks just in case your inspector may have missed something.  It’s a good idea to check outdoor faucets as well.
• Cracked sewage and drainage pipes might also be something that your inspector doesn’t take a look at and may therefore miss. It may be worth your while to pay a bit of extra money to have an in depth look at your drainage pipes.
• Sometimes home inspectors will not pay a lot of attention to decks, porches and balconies. There can be problems in these areas such as safety issues and cracks that may not arise until right before you make the purchase of the home. Perhaps a second follow up inspection may be a good idea if you feel that one of these areas may be a potential problem.

Again, home inspectors are human and they are not above missing some potential problems with your new home. Realize this fact before you have your home inspection so that you too can keep your eyes open for any potential problems you see in and around your prospective new home. Once you move in you will be able to rest assured that you have not bought into a money pit.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

Why You Should Hire A Professional When Buying A Home!

Many people wonder whether they should hire a real estate professional to assist them in buying their dream home or if they should first try to go it on their own. In today’s market: you need an experienced professional!

You Need an Expert Guide if you are Traveling a Dangerous Path

The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a home that is priced appropriately and ready for you to move in to can be tricky. An agent listens to your wants and needs, and can sift out the homes that do not fit within the parameters of your “dream home”. A great agent will also have relationships with mortgage professionals and other experts that you will need in securing your dream home.

You Need a Skilled Negotiator

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible renegotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes. Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.

Bottom Line

Famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

The Cost of Waiting to Buy a Home

The National Association of Realtors (NAR) recently released their July edition of the Housing Affordability Index. The index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national level based on the most recent price and income data. NAR looks at the monthly mortgage payment (principal & interest) which is determined by the median sales price and mortgage interest rate at the time. With that information, NAR calculates the income necessary for a family to qualify for that mortgage amount (based on a 25% qualifying ratio for monthly housing expense to gross monthly income and a 20% down payment).

Here is a graph of the income needed to buy a median priced home in the country over the last several years:

And the income requirement has accelerated even more dramatically this year as prices have risen:

Bottom Line

Some buyers may be waiting to save up a larger down payment. Others may be waiting for a promotion and more money. Just realize that, while you are waiting, the requirements are also changing.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

Things to Consider When Buying a Condo

Buying a condo can be a good experience if you know what you are getting into. If you enjoy the easy life but you still want to own your own home, buying a condo may be just the thing for you! Today, we will look into a few things you may want to consider when buying a condo.

• Get to know your HOA if there is one. Find out what you can and cannot do in and around your new condo. Many people take getting to know about their Homeowner’s Association for granted until it is too late and they run into a problem.
• Look into the bylaws of the condo you are thinking about purchasing. You can find out about rules regarding pets, parking, maximum occupant guidelines as well as finding out about things you can and cannot change in the unit if you decide you would rather rent for a while.
• Have the building inspected to see if there will be any need for repairs before you purchase it. This will help you in the long run avoid spending needlessly on things that could have already been fixed before you move in to your new condo.
• Find out what your voting rights might be as a condo owner. You can check this by again looking into the HOA and those that govern it.
• Check into the finances of the condo to see that there are reserves for building maintenance that may come into play in the future.
• Go door to door and get to know your potential neighbors. You will be living in close proximity to your neighbors if you do choose condo life, so spend a little bit if extra time getting to know those around you.

Condo life can be great if you are an empty nester or if you are single or an older individual looking for a more relaxed lifestyle than typical home ownership offers you. The last thing you want to be doing in your later years is worrying about keeping up a house and all that it entails. Start looking into condo life today by doing a bit of research online for condos in your area for sale or rent. There are pros and cons to owning your own condo so be sure to do your research and figure out if living in a condo works for your lifestyle. You may find that you have found the gold at the end of the rainbow by purchasing your own condo.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.
You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

Building Wealth With Home Ownership 101

This blog is not about quick and easy profits! True wealth building rarely is. It’s about steadily increasing your net worth over time. It is not about speculative investments to get rich quick. It’s about how to build meaningful wealth while enjoying your home.

There are many variables and moving parts to the home ownership puzzle. But, it’s not brain surgery either. Home ownership is possibly the most accessible means of building wealth that is available to the general public, non-investors, and average middle-class Americans. Here’s how to make it work…

Rule # 1: Consider the “5-year Rule” before you decide to buy.

Don’t consider buying a home unless you plan to own it for at least 5 years. That is because the wealth building cycle starts very slowly during the first 5 years.

After 5 years, the wealth building cycle begins to accelerate. Selling before then may cause you to lose money because you won’t necessarily get back all the up-front costs of buying.

Rule # 2: Make sure you don’t pay too much when you buy!

Any retailer will tell you they make their profit when they buy. That’s because consumers in the marketplace will dictate the final sale price. The retailer can’t control that. The retailer can only control what he pays for an item. The difference between what he pays and what he can sell it for is his profit.

It’s the same with housing. Get proof of the current value of the property you’re buying by researching the comparative values (“comps”) of similar properties actually sold recently. These are available for free from your Realtor.

Rule # 3: Shop to get the lowest interest rate you can.

But, don’t accept fancy terms of a loan like adjustable rate mortgages (ARM) or deferred (balloon) payments. A fixed rate over the length of the loan is more preferable so you know what to expect over time. Remember, this is about wealth building, not speculative investing!

Rule # 4: Pay for a professional home inspection after you are under contract.

Then be insistent that everything is in top condition before you buy. Remember, there are a lot of moving parts. You must minimize how many of them are likely to breakdown soon after you buy.

Watch for Building Wealth With Home Ownership 102 for rules to follow while you own.

Information courtesy of Orlando Realtor Teri Isner.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

Should I Go It Alone?

There are two typical questions raised all the time about real estate…
Sellers: “Shouldn’t I first start with trying to save some money by selling on my own as a “For Sale By Owner?”
Buyers: “Shouldn’t I just look around on my own and work with the listing agents when I find something I like?”
Both of those scenarios have hidden problems. The field of real estate is loaded with land mines. Real estate professionals “know the ropes” so you don’t need to. Here are some thoughts for you to consider!

• Sellers need true expert guidance navigating the dangerous pitfalls that currently exist. Finding a buyer ready, willing and able to pay fair market value at a time when lending standards are so stringent is not an easy task.

• Buyers are finding reasonable financing is not easy to come by. It can be very tricky when interest rates are volatilelike they have been over the last several months. And underwriting standards are tight, meaning that you need special guidance getting pre-approved and assuring that your credit is clear.

• Both buyers and sellers need to be hiring a talented negotiator who could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that offer after a home inspection, to the possible cancellation of the deal based on atroubled appraisal – you need someone who can keep the deal together until it closes.

• Sellers should also realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating forthemselves and their families, what makes you think they will not act the same way when negotiating for you and your family?

• Buyers should consider working with a buyer’s agent from the start. That should be someone who really tunes into your needs and wants. That’s so they can really pinpoint the search for the right property for you. They can save you hours of spinning your wheels and they are ultimately compensated by the seller at the closing table.

Both buyers and sellers should take to heart that old saying “You get what you pay for.” Just like a good accountant or a good attorney, real estate professionals will save you money when all is said and done.

Information courtesy of Orlando Realtor Teri Isner.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

First-Time Homebuyer Alert: Don't Make These 4 Mistakes

First-time homebuyers owe it to themselves to do a lot of research about the finances of buying a home. Here are four first-time homebuyer mistakes to avoid.

1. Spending the maximum amount on a mortgage a lender will loan.

Lenders often qualify buyers based on incomes and debt-to-income ratios without considering how much the borrowers spend on other budget items.

Financial experts recommend that consumers decide how much they want to spend each month on housing before meeting with a lender. It’s up to you to know your budget and to not just jump at a mortgage amount that a lender says you can afford.

2, Not getting pre-qualified.

This should be the first step toward homeownership. Many first-time homebuyers wait until they are ready to start house hunting before contacting a lender.

Buyers need to get pre-qualified early enough in the process so that they can make changes if they need to or correct errors on their credit report. Some first-time buyers may need to spend up to a year saving more money, increasing their incomes or cleaning up their credit before making an offer on a home.

3. Underestimating the importance your credit score.

While most consumers know it's important to have a high credit score, not everyone understands how costly a low score can be. Mortgage lending is done with a tier of interest rates and terms based on consumer credit scores. Learn about credit scores the minute you start working. Many websites provide information about how to improve your credit score.

And remember, even after a mortgage approval, you must avoid applying for new credit or taking on new debt, because a second credit check is now often required before settlement.

4. Choosing the wrong mortgage product

Many first-time homebuyers opt for a 30-year fixed-rate mortgage only because it is an industry standard. Alternatives to a 30-year-fixed sometimes make more sense. For example, buyers certain they will be relocated by their companies within five years may find a 5/1 ARM could be a much better mortgage.

Homebuyers eager to build equity in their homes or who are older and want to live mortgage-free in retirement should consider a 15-year fixed-rate loan or even a 10-year mortgage to reach their goals.

Do your homework and don’t jump at a mortgage because it will buy you a bigger home.

Information provided by Orlando Realtor Teri Isner.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

Buying a Short Sale? Here's What You Need To Know

Buying a property through a short sale can be financially beneficial. But, as a real estate buyer, you need to go into the process understanding your market! That means having a knowledgeable realtor and attorney.
A homeowner is “underwater” with their mortgage when they owe more than the value of their home. The term “short sale” comes from the situation where the proceeds from a sale are less than, or “short” of, the amount of debt.

Lenders are motivated to allow a short sale when they perceive it will create more net income than a foreclosure. Sellers are motivated because it puts them in more control of timing, and causes less damage to their credit than foreclosure.

For the buyer, a short sale means a purchase price that is discounted from the normal sale price. However, the market situation with short sales is very specific to your state and your market. Here are some trends across the country…

25% of US homeowners with a mortgage are underwater. That is 10.7 million homes! That percentage is down from 28% in September 2012. It is important to note that 8.3 million of those homes are on the edge of being underwater with a LTV ratio of 90%-110%. The other 2.4 million have an average LTV ratio of 125%.

A primary factor helping that downward trend is a decline in investors’ interest in short sales. A decline in investors buying at discount means prices are moving upward. Increasing prices means increases in value, which means increases in equity for the homeowners.

However, according to RealtyTrac.com it will take years, not months, for the 125% LTV owners to recover enough equity to allow them to sell. That means the short sale opportunities for buyers will be available for a while.

As a buyer of a short sale, be aware the process takes time. All parties have many more documents to review and approve. Your due diligence will take longer. And the process leading to a closing will take longer.

Make sure you are working with a Realtor and an attorney who have experience with short sales in your market. One way to qualify a Realtor is to know they are trained as a Certified Distressed Property Expert (CDPE). That means they have specific training in streamlining short sales. It is not mandatory, but it is a valuable credential.

At least, make sure your Realtor and attorney have actual experience with short sales. Go into the process with a lot of patience.

Information courtesy of Orlando Realtor Teri Isner, Orlando Avenue Top Team.

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently. You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

Get Orlando Daily News delivered to your inbox! Subscribe here!

4 First-Time Homebuyer Mistakes To Avoid

First-time homebuyers owe it to themselves to do a lot of research about the finances of buying a home. Here are four first-time homebuyer mistakes to avoid.
1. Spending the maximum amount on a mortgage a lender will loan.
Lenders often qualify buyers based on incomes and debt-to-income ratios without considering how much the borrowers spend on other budget items.
Financial experts recommend that consumers decide how much they want to spend each month on housing before meeting with a lender. It’s up to you to know your budget and to not just jump at a mortgage amount that a lender says you can afford.
2. Not getting pre-qualified.
This should be the first step toward homeownership. Many first-time homebuyers wait until they are ready to start house hunting before contacting a lender.
Buyers need to get pre-qualified early enough in the process so that they can make changes if they need to or correct errors on their credit report. Some first-time buyers may need to spend up to a year saving more money, increasing their incomes or cleaning up their credit before making an offer on a home.
3. Underestimating the importance your credit score.
While most consumers know it's important to have a high credit score, not everyone understands how costly a low score can be. Mortgage lending is done with a tier of interest rates and terms based on consumer credit scores. Learn about credit scores the minute you start working. Many websites provide information about how to improve your credit score.
And remember, even after a mortgage approval, you must avoid applying for new credit or taking on new debt, because a second credit check is now often required before settlement.
4. Choosing the wrong mortgage product
Many first-time homebuyers opt for a 30-year fixed-rate mortgage only because it is an industry standard. Alternatives to a 30-year-fixed sometimes make more sense. For example, buyers certain they will be relocated by their companies within five years may find a 5/1 ARM could be a much better mortgage.
Homebuyers eager to build equity in their homes or who are older and want to live mortgage-free in retirement should consider a 15-year fixed-rate loan or even a 10-year mortgage to reach their goals.
Do your homework and don’t jump at a mortgage because it will buy you a bigger Orlando Florida home.
Access Teri’s one-stop Orlando FL home shopping website.