GREENWOOD VILLAGE, Colo., July 16, 2018 /PRNewswire-PRWeb/ -- First-time homebuyers, although usually excited, are typically unaware of the buying process. To educate them, REALTORS® Amy and Scott Grossman, of Madison & Company Properties, list the following five mistakes to avoid:

No. 1: Not getting pre-approved for a loan. "The biggest mistake is not getting pre-qualified, and more ideal is pre-approval with the buyer's lender of choice," said Scott. "This is so important, especially in a healthy market where there are multiple offers."

Added Amy, "Calling an 800 number service or big bank over the phone or a 5-minute credit app to a mortgage broker may not be in their best interest for success. It's really important the buyer really get as far as they can and make sure the lender has all their supporting documents. Do they have down payment money? Do they qualify for special programs and understand their closing costs before they get excited and run out and fall in love with a home?"

No. 2: Not understanding the loan. Often people don't understand their qualifications for a loan. They should also take into account the taxes, insurance, and HOA payments. "If they are just calculating principal and interest, that's not going to work," stressed Scott.

No. 3: Having a co-signer. Some people think having a co-signer is not a big deal. "Well, the person who is co-signing is now responsible for the full payments of what is being purchased, which impacts their debt-to-income ratio if they go to buy something down the road," noted Amy.

No. 4: Buying in an LLC or trust, or changing the title after closing to one of these. This can often be a problem for the lender and title insurance.

No. 5: Not utilizing a REALTOR®. People these days frequently just go online and pick out places and start randomly calling agents to show. "To have success and really be a smart, savvy buyer, they should ideally meet with a real estate professional in person and go over everything beginning to end to make sure everyone is on the same page," concluded Scott. "They should then work with the agent to determine properties, criteria, and identify any challenges up front, then go out and see homes that are a fit."

About Amy and Scott Grossman, Madison & Company Properties, Grossman Dream Homes
Amy and Scott Grossman are Real Estate Transition Specialists®. Their expertise includes working with people in Downsizing or Upsizing Situations; Sellers simply moving to a new home locally or out of state, transitioning into a senior living type arrangement; Complex Real Estate Combinations -- Sell then Buy, or Buy then Sell; Later in Life Transition -- those looking for low maintenance, patio homes, retirement/active adult living age 55+ type communities; Estate/Probate, Trust, Conservatorships; and First Time, or First Time in a long time Home Buyers. For more information, please call 303-941-9436, or visit http://www.grossmandreamhomes.com.

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SOURCE Madison & Company Properties, Ltd.