Buying a home is a big deal and requires a lot of thought and preparation. I have seen homebuyers mistakes many times so decided to share them with you so you can learn from them. Preparing your finances upfront is something that you should do before going out and searching for houses. In today’s competitive Real Estate Market homes are sold quickly. Being preparedwill help you get the home you want without missing out on a great opportunity because you did not have your financials in order. I have seen buyers going around searching for homes, and they have not talked to a lender yet. Without speaking to a lender and going over your finances, you are not sure what your affordability is. You may be looking at houses that are way under or over your price range. Once speaking to a lender you will be able to find out exactly what you should be looking at.
Already Found A Realtor
If you already found a Realtor that you would like to work with but you have not found a lender, no worries. An experienced Realtor will have a few great lenders that they can refer you to. A lender will be able to pinpoint what price range to look at based on your budget, qualifications and your comfortability of a certain monthly payment. As a Realtor, we encourage you, the homebuyer, to do this so that we can understand what target price of homes to search for and focus on finding you and your family the best home in that price range.
Cleaning Up Your Credit
Another reason to speak to a lender before searching for a home is that there may be a few dings on your creditthat you did not know about. This will increase the interest rate you will have to pay on a mortgage loan. By speaking with a lender before searching for a home, we may be able to take care of these things so that they come off your credit pretty quickly. This will increase your credit score which will make your payment lower on that possible dream home that you would like to buy.Having a lower creditscore could be ½-1or point more from someone with a higher credit score. What does this mean? It means that the person with a lower credit score will pay $200-$400.00 for the same house. So preparing yourself before you go out and look at houses is extremely important. Falling in love with a house to then find out at that very moment that you just can not afford the monthly payment with break your heart.
Getting New Credit Cards
When buying a home, it is extremely important that you stop shopping. Seriously, homebuyers mistakes include shopping for things they really don’t need at that time. Do you need another pair of slacks or one more pair of shoes? Well, if you do, this is ok but when you get to the cash register and they ask you if you would like to save 10% on today’s purchase, “JUST SAY NO”! BTW, this also includes furniture that you may want for your new home or even a car. This is one of the worst things you can do if you have gotten your offer accepted and you are “In Escrow”. You will most likely get a call from your lender because now, your credit score would have dropped and you may not qualify for the loan that you were trying to get. This is a big deal, so DON’T DO IT!!
Hate Your Job?
You may not like your job anymore and may have been offered a new one. Another one of those homebuyers mistakes is quitting that job before you close escrow on your new home. Here is another bit of advice; DO NOT QUIT YOUR JOB!!. No matter how much you hate it, stick it out. Once your loan has been approved and you are moved into your new home, you can then decide if changing jobs is what you want to do. Hopefully, you will have your next one in line because you now the proud owner of a new house and have a mortgage payment at the end of the month:-)If you have not spoken to a lender yet or would like a referral to one, just email us or call usat 619-818-8122. We have several high-level professional lenders that we have been working with for years. They would be able to help you figure out what target market you should be looking at based on the information that you give them. Once that is done, we can get you on the road to homeownership.