For instance, when buying a home don’t get a new credit card. When you do obtain a new one, your credit gets “run,” which drops your credit score. Meanwhile, your lender notices this new card and its debt limit. A credit score drop and credit limit can negatively affect your loan. Also, be careful about charging lots of stuff on your current credit card when in the process of buying a home. Keep in mind that your credit score goes down when your credit balance goes up. When your credit score decreases, the interest rate for the loan will increase, as well as your monthly mortgage payments. Rather than go on a spending spree, do your best to pay credit cards down during the home buying process.
Another mistake a buyer can make is leaving, quitting or changing their job during escrow. Lenders are all about stability. They want to know you’ve got the income you originally told them about. If and when you don’t, that gives them cause for concern and can mess with your loan.
Before you purchase a home, it’s really important that you know as much as you can about the neighborhood. If you don’t properly investigate where you’ll be living, you could end up with the neighbors from hell or too close to a fire station and its loud sirens. Besides getting a real feel for the neighborhood before you buy the new house, you also need to take into account the commute to places you’ll plan on going often, like mom’s house, the bank, the grocery store, and work. All too often, people buy a home to “get away from it all,” only to discover they miss being near it all!
There are no guarantees that a home you’ll buy will appreciate in value, so don’t buy one just focused on the hope that you’ll be able to sell it again for a profit.
As for dealing with home inspections, it’s best to hire a reputable, professional company rather than rely on a friend or relative who may or may not really know what they’re doing.
Finally, think with your head and your heart– not just your heart. You have to be careful about buying a place on a purely emotional whim.
If you’re looking for advice from an experienced, expert real estate agent, do not hesitate to contact Alexis Hlady today.