Avoiding Common Mistakes When Buying a House
Hey there, fellow homebuyers! As someone who has been renting since college, my partner Zane and I have recently embarked on the exciting journey of considering buying our own house. Along the way, we gathered valuable tips from an expert in the field. With their insights and our own research, we've gathered a wealth of knowledge to share with you.
So, if you're also thinking about taking the leap and buying a house, keep reading to discover the common mistakes to avoid. Trust us, these tips can save you a lot of trouble down the road!
Finance: The Key to Approval
One of the most crucial aspects to prioritize before diving into the house-hunting process is ensuring your finances are in order. Our expert friend emphasized the importance of consulting with a mortgage advisor before taking on additional credit.
Lenders often run credit checks, and multiple inquiries within a short period can raise concerns. To boost your chances of approval, they suggested avoiding closing credit accounts and aiming to reduce balances to 30% or less. These simple steps will help you appear more financially stable to lenders.
Deposit: Exploring Your Options
Our expert friend enlightened us about alternative options for the deposit. While saving up a 20% deposit may seem daunting, there are loan programs available that allow for a reduced deposit. They shared valuable information about FHA, VA, USDA loans, as well as the possibility of a 3% down payment with mortgage insurance. Researching and understanding these options can help you make an informed decision based on your specific situation.
Life Changes: Timing is Everything
During our conversations, our expert friend stressed the importance of considering life changes during the home buying process. Switching jobs, for example, can cause complications.
Mortgage lenders typically prefer a minimum of two years of employment or a consistent track record in the same line of work. By keeping this in mind, you can plan accordingly and ensure your job situation aligns with your home buying goals.
Inspections: Don't Skimp on Due Diligence
Our expert friend shared stories of buyers who had skipped home inspections and faced significant issues later on. They emphasized the importance of due diligence and the value of professional inspections. By investing in thorough inspections, you can uncover any hidden problems and make informed decisions about the property you're considering.
Shop Around: Your Mortgage, Your Choice
Throughout our discussions, our friend repeatedly emphasized the need to shop around for mortgages. They encouraged us not to rush into a decision and to explore different lenders, compare rates, and seek the best financial fit. This expert advice reminded us that we have the power to choose the mortgage that suits our needs and financial goals.
As fellow homebuyers, we're excited to share these expert insights and tips with you. Our conversations with our knowledgeable friend have equipped us with the knowledge to navigate the home buying process more confidently. Remember, by being thorough and informed, you can avoid common mistakes and make the best decisions for your homeownership journey.
As you embark on this exciting journey, there's something else you can start considering alongside all the practical aspects — the style and ambiance you envision for your new home's interior. It's the perfect time to unleash your creativity and transform your space into a reflection of your personal taste. To help you with this exciting endeavor, we've got you covered with some easy decorating tips that will turn your house into a warm and inviting sanctuary with this blog post here!
