There’s many things to consider when you’re looking to purchase a home. It’s one of the largest financial transactions you will make in your lifetime and we want to ensure you have a smooth transaction throughout the mortgage process. Here is a list of some things you should avoid before buying.
- Not Having a Plan in Place – You’ve decided to buy a home. That’s great! During this exciting time, it’s important to have a plan for what you would like your future home to be like. Think about how much of a mortgage payment you can comfortably make and what features of a house are important to you (number of bedrooms, distance from work, property acreage, etc.). By setting expectations and communicating them to your Loan Originator, he or she can work with you to finance your perfect home.
- Not Giving Yourself “Credit” – Don’t assume you won’t be able to afford a mortgage. There are many great programs available for people from different financial backgrounds. Combined with today’s historically low interest rates, becoming a homeowner is easier than you might think!
- Not Screening Your Realtor – Working with a Realtor who you’re compatible with can make all the difference in your home buying experience. Your Realtor should know the area where you want to purchase a home and understand your needs. It’s possible that you may need to interview several Realtors to ensure you are a good match.
- Forgetting to Get Preapproved – A preapproval is a helpful tool for a homebuyer to have. A preapproval is a commitment from your lender stating how much they would be willing to lend you after evaluating your financial situation. Having a preapproval letter shows sellers and their agents that you are serious about purchasing a home and you’ve already been preapproved to purchase a home in a certain price range. This can give you leverage over other buyers who don’t have a preapproval.
- Picking a Mortgage Just for the Rate – There are many factors to consider when choosing a mortgage product, besides the interest rate. You should select a mortgage that works best for your unique financial situation. For example, a conventional mortgage might have a lower interest rate, but an FHA mortgage might provide a lower down payment option. Your Homestead Loan Originator can help you decide on the mortgage is best for you.
- Not Getting a Home Inspection – Having a home inspection done by a professional home inspector is a good way to ensure that the home you want to purchase is up to snuff. While not a requirement, lenders highly suggest taking this step before buying a house. The inspector can often spot issues that might cause problems later on. It’s also a good idea to attend the inspection personally so you can ask questions or voice concerns you might have.
- Not Knowing Your Rights (and Responsibilities) – It’s important to be educated about the mortgage process and to know what you should and should not be responsible for. You should be aware of your closing costs and any obligations you may have when you sign your contract. By knowing what is in your contract, you can avoid problems later on. Your Loan Originator and Realtor should both be able to help you understand these aspects of buying a home. They are here to help you!
If you would like more information about the home buying process and what you should know before purchasing a home, please contact your Loan Originator today!