Buying your first home can be quite hair-raising and exciting. Maybe you have already purchased a house, and you have realized that it is not exactly what you want any more. Should you be considering selling your home or looking for some advice to make a better choice the second time around, you have come to the right place.
One cannot undermine the importance of an excellent real estate agency such as WeBuyCLE.com, but it is inevitable to get caught up in shopping for a new home and to end up making a few mistakes or not to think things through properly. Let us go through a few common mishaps to help you be better prepared and avoid making the same mistakes as others have.
Not Applying for Mortgage First
The buyer demand, unfortunately, outweighs affordable homes on the market. In this competitive market, you could end up losing a home you had your heart set on should you not be preapproved for a mortgage, and you could end up looking at a home that you won’t be able to afford. To avoid all of this, ensure your mortgage is pre-approved, as it sends a message that you are a serious buyer whose credit and finances pass muster.
Only Talking to One Bank
The more banks you approach, the better. You will be able to compare the different deals you have been offered and have the opportunity to choose the better deal with the lowest rate. Try to see at least a minimum of three different banks, compare all their prices, lender rates, and their loan terms, and choose the one that is the most reasonable and cost-effective. Remember that a mortgage loan officer worth its weight will be able to warn you about any bumps you may face on this road to buying your home.
Rushing Through the Process
If you rush through the process of purchasing your home, you will be unable to save for a down payment and closing costs. Try to plan at least a year to be able to save up for a sizable down payment. Take time to work on boosting your credit score and saving money to put yourself in a stronger position to be preapproved. It could take you several months or possibly even years to repair poor credit caused by rushing through everything.
Draining Their Savings
Most people scrape up all their savings to make a decent down payment of at least 20% to avoid paying for mortgage insurance and, in the end, live on the edge with no savings at all. Consider creating an emergency fund with at least 3 – 6 months of living expenses to be safe.
Not Budgeting
One too many times, people get emotionally attached and set their hearts on a house they want to make their home. Most of these houses people set their hearts on end up being more than they can afford. If you purchase an affordable home and focus on the basics for the first while at a later stage, you can expand and add the extra things to your home that you feel are missing, and that way, you can create a place that is truly yours.
