Common Pitfalls when Buying a Home
Filed under: Real Estate
Lloyd Mize
Harvest Team Real Estate
There is nothing more frustrating than finding the home of your dreams, and then running into problems with the mortgage when you are ready to close the deal. As a home buyer, there are a few things that you can do to prepare to buy a home. It is important that you are protecting your financial history to ensure that you can qualify for the loan.
Unfortunately, there are a few common problems that can pop up if you aren’t careful:
Running Up the Credit Cards: Just because you have credit available, doesn’t mean that you should be using it. Lenders will look at your debt-to-income ratio to determine if they are willing to provide the money for the loan. If you are carrying a lot of debt, then it will be harder to get the loan that you need. Pay down your credit card balances as much as possible before applying for a mortgage.
Buying New Furniture or Appliances: Even though you are excited to move into your new home, you need to hold off on purchases that are related to your move. Some new homeowners go out and buy the appliances and furniture before the loan closes. They don’t realize that these big purchases will impact their credit score and debt-to-income ratio. Wait until you close on the property and everything is finalized before you borrow money for any other large transactions.
Closing without an Inspection: Even though the inspection might seem like another cost to add to the list, it is an essential step before you buy a home. Spend the money to bring in an inspector so that you know the potential problems with the property. This information will give insight into the money that will need to be spent on renovations or repairs after you move into the new home. If large repairs are needed, then you might look for another property.
When you are buying a home, it is important that you have an experienced real estate agent by your side. An agent can help you avoid some of the common problems that pop up during the closing. For more information, call Lloyd Mize at Harvest Team Real Estate at (951) 551-1677
