Ten Biggest Mistakes Made by Home Buyers–#2
Mistake #2 Buyers, choose the wrong loan.
In the past few years the lending world, here in Las Vegas, has seen more changes than you can count! There are lots of programs and terms most of us have never seen before like; interest only, negative amortization, hard or soft prepays, option arms, 40 year terms, balloon payments, LIBOR, monthly adjustable, reverse mortgages, sub-prime, A-paper…I could go on all day, but that’s not the point. What I want to stress is that things change everyday in “Lender World” and lenders themselves have a hard time keeping on top of everything that is available especially when you put different guidelines into the mix. So if you are a buyer PLEASE EDUCATE YOURSELF! Ask lots of questions! Sit down with a loan officer, get a good feel for them, and make sure they know more about it than you do! Understand what you are signing before you go to escrow, the escrow company will not know the details any better than you will. If you get a loan that you do not understand and your payment changes or you have a balloon payment that you can’t make, you can and very likely will lose your home. This will cost you thousands of dollars by effecting your credit, insurance rates, job opportunities, interest rates on your current credit cards, tax responsibilities and over-all quality of life. Not to mention how it will impact your mental and emotional state of being. You will just feel like a “Loser!” I don’t want to see this happen to anyone, so please choose the right loan. If you are ready to start educating yourself on the loan process, click here.