It’s been a while you had been working, day and night all determined to get your first home.
You have saved, saved and then saved again for that down payment. You have read several articles on the procedures and selecting the right property.
Invested countless hours while touring the neighborhood and researching through the internet.
You are now ready for your first home purchase. You think you are?
Wait, before you make the most expensive investment/purchase of your entire lifetime, make sure you avoid some of the common mistakes that could save you from burning a hole in your pocket and some serious annoyance. Navigating you through the commonest mistakes the buyers tend to commit.
Before thinking of starting your search, get a copy of your credit card report.
The cleaner your reports are, the higher are your credit card score, and the more likely you are to get approval for loan at lower interest rate.
Not only this, it will also help you to save many of your months while investing on the mortgage payment.
So start reviewing your credit card few months before you start the house hunt so that you have time to ensure the facts are correct and identify mistakes before the mortgage lender checks your credit.
There is a possibility of lenders changing their terms if your credit score changes drastically amidst pre-approval and the loan closure.
Lenders might also rescind your request even if there is a notable difference in the income levels by the time of closing of the loan.
Annulment of offer might happen even if you have a pre-approval letter because it is not a guaranteed fund.
Keep a check on paying your shopping bills regularly and keep clear of new credit accounts. Avoid changing jobs until after closure, particularly if you’re planning to move to an entirely new industry.
Once the credit card reports are reviewed, start working with a qualified lender and make up your mind for the amount you are willing to spend.
You need to have a time margin to get approval before looking at homes as it not only saves your time but also gives you a clear thought on the affordable housing within your budget.
It also adds as an added advantage over the other bidder who might not have received any pre-approval. A seller always prefers the buyer who is all ready and pre-approved for the mortgage.
Create a budget plan for paying the debts, before searching for properties. Allocate your income to housing costs, including mortgage principal, interest, taxes, and insurance.
You can find worksheets online that will help you to figure out how your income, debts, and expenses can impact what you can afford each month for a decade or more mortgage loan.
Millennials often tend to forget the hidden costs that come along with the purchase price of the home, be it insurance, utilities, taxes or fees.
There are various unexpected costs during mortgage process like appraisal fees, homeowner’s insurance fees, escrow fees, property taxes, and even moving costs, plus the cost of repairs and maintenance.
There are several items that can add up to a significant amount of money over time.
It often happens that you get hesitant asking the seller about the smallest of things like a stuck window, a leaky faucet or may be about the house is well lit naturally.
Stop being shy about asking about the house after all you are investing a huge amount of money into it. Speak up and get the issues fixed before the closure of legal agreement. There is also a misconception about brand new homes not needing any inspection.
You have invested in your dream house only to realize lately that your neighborhood is not what you expected it to be.
There are no good schools in the vicinity, the house is located in an area with industries getting developed around in a span of some years.
The locality gets severe traffic jams which you would not want while commuting to work. Also, don’t forget to look out for the security of the place so that returning late night is not an issue.
Real Estate Industry is evolving at a faster and a competitive rate and it is really difficult to find a house to invest in. Don’t make it even more difficult by committing these mistakes. Prevent yourself from committing these little but worth not overlooking mistakes, to land to an efficient home purchase.
You can always put your faith in one of the most trustable companies in this industry. Pop open the bottle of celebration for your first house with Omaxe, turning your dreams into reality.