There are many common mistakes first-time homebuyers make. Some are minor, while others can end up being costly. Fortunately, several of these mistakes are avoidable! Please read and share this article with other first-time homebuyers to help them spot these common errors before making them.

Mistake #1: Looking For A Home Before Getting Pre-Approved

When you shop for a home before approval, you run the risk of falling in love with a home that's out of your price range --ruining the whole home buying experience before you start.

Instead, focus on the finances first. Make sure you have enough saved for a down payment and the closing costs and get your pre-approval before you start home shopping.

Mistake #2: Buying More Than You Can

An origination fee is part of the multi-step process of getting a loan and includes the cost of processing the application, underwriting, and financing the loan. The lender may combine the fees into one charge or may list each one individually.  

Either way, origination fees are separate from your mortgage down payment and are often paid as part of your closing costs.

What Do Origination Fees Cover?

• Loan processing, such as reviewing your application and preparing documents.
• Underwriting, such as gathering and verifying your information, including your credit score.
• Loan Funding, such as "points" that lower your interest rate
  

How To Determine the Cost of Your Mortgage Origination Fee

The typical origination fee is