The Do's and Don'ts of Buying a Home
Finding the perfect property, negotiating a price you can afford, and receiving financing are all important factors in buying a new house. Many homebuyers successfully navigate all three criteria, only to make significant errors before finalizing the purchase. Are you planning to purchase a home soon? Continue reading to discover the dos and don’ts of buying a new property.
Do: Consider Paying for a Professional Inspection
Sellers may not always tell potential buyers the complete picture or they may have done some patch-up work to hide problems in the property until the deal closes. This is why you need help from a professional inspector who can spot possible issues in the property, such as leaks and pest infestations. When you hire an experienced professional to look into your prospective home, you'll save time and money in the long run.
Do: Use a Mortgage Calculator
Your lender can tell you how much house you qualify for but only you know how much you can comfortably afford to pay each month. Mortgage calculators are made to help you determine the right figures. It’s important to only pay a comfortable price so you can still enjoy living a comfortable lifestyle.
A mortgage calculator can narrow down your search for properties that are within your budget. It can also play with the numbers to discover how different home prices affect your monthly payment.
Do: Get Pre-Approved for Your Purchase
Getting pre-approved for a mortgage is a procedure in which you initiate an application with a lender and acquire a conditional commitment for a mortgage. This is a great way to speed up and simplify the closing process once you’re approved. It also shows sellers that you’re serious about buying a property. Do this process to have an advantage when it comes to negotiating for your prospective home.
In the competitive property market, you should do your best to stand out from the crowd. Getting pre-approved indicates that a bank or credit union has already confirmed your information and that you have started the mortgage application process. It also helps you discover possible issues with your prospective home before signing the contract, such as credit report errors.
Don’t: Change Your Job
While changing professions may boost your career, it may make it more difficult to get a mortgage. A lender wants to know that you have a steady source of income and that you can afford to pay back your loan. If you were pre-approved for a mortgage based on a certain income and job, any changes may interrupt the deal and may delay your closing.
Don’t: Make Major Purchases
Another common mistake made by property buyers is to spend on furniture to begin planning for their new living arrangements. It may be tempting to begin purchasing furniture and appliances to furnish your new house, but it’s important not to splurge for the meantime.
Whether you use your bank account or credit card, taking on new debt for these household items can affect your credit score and may raise a red flag for the lender. This may result in your loan approval being denied.
Apply for a Real Estate Loan Now
Ready for a home loan? Contact 1st Community Credit Union in Wisconsin if you are planning on buying a new property, such as a home for your family. Our team of lending professionals will gladly answer all your questions about mortgages.
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