It’s easy to make mistakes, especially if this is your first time making a home purchase. However, that doesn’t mean you should make the same mistakes made by home buyers before. That is why hiring a property consultant or a lawyer is a must if you want to make it right and avoid problems in the future. Remember, a single mistake can leave you with buyer’s remorse, cost you your mortgage, or even end up being house poor. Or sometimes, leads you to hire a property attorney to help you fix it.
While buying a house may seem an exciting experience, one shouldn’t be overwhelmed with the home-buying process. If you are hesitant or has zero knowledge on how to do it right, then consult a property lawyer for such purchase. When making a home purchase, avoid doing the following.
Shopping For Houses Before Knowing How Much Loan You Qualify For
One common mistake home buyers make is that they go on house hunting without knowing how much they can afford first. Since most of us need to apply for Mortgage Loans Midland to make home ownership a reality, one needs to check which program you’re eligible to learn the maximum amount you can borrow. If you look for a house first, then you might get disappointed if you find out the home you want is out of your price range.
Talking To A Single Lender
If you limit yourself to the first lender you come across with, you lose the opportunity of comparing rates and finding a good mortgage deal. Exercise your right and shop for lenders. Aside from lenders, you can also consult property lawyers as they can also help you.
Stretching Your Budget
Once you applied for a mortgage and got approved for a home loan, you’ll get to the amount of loan your lender is willing to lend you. However, it would be best not to avail the maximum credit limit. For example, your lender said you qualify for a $425,000 mortgage. Just because they are willing to give you this amount means you can comfortably pay the loan every month.
Good Read: What House Can I Afford?
Draining Your Bank Account
Not everyone is qualified for a zero down payment mortgage. While paying at least 20% down payment has its perks, and you shouldn’t overexert your savings just to meet the 20% mark. Depleting your savings can leave you struggling to pay for your monthly mortgage – not to mention all of your other financial obligations. Consider your options, see if you qualify for down payment assistance programs or grants, or even use down payment gifts when applicable.
Failure To Deal With Credit Issues
A poor credit score and history can stop you from getting approved for a mortgage. Lenders have different credit score requirement, but most will ask for at least 580 FICO score. If you don’t clean up your credit history, pay your dues on time, or if you keep on opening new credit lines, you can have a hard time finding a lender who will finance your purchase.
Good Read: Disputing Errors on Credit Reports
Using Your Heart When Buying A House
When you make decisions while you’re feeling extreme emotions, chances are you’ll choose the option you will regret later on. It is easy to fall in love with a house that’s big and beautiful. But if you don’t listen to your intuition and was blinded with your seller’s sweet talk, you might end up skipping essential steps such as a title search or the home inspection. This can prove to be problematic if the house is an actual fixer and upper, leading you to pay far more than it’s worth.