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The Dos and Don'ts When Buying a Home

The Dos and Don'ts When Buying a Home

Buying a home has several moving parts to the process. Before you get yourself excited by imagining all of your belongings moved in, you will want to make sure you are well prepared for making this huge accomplishment. Here is a list of things that you should both do as well as avoid while you get yourself ready.
 

What Is Recommended To Do

Check your credit - Your credit plays a big part in qualifying for a mortgage so make sure you check yours to know your score and check for accuracy.
 
Get pre-approved - Contact a lender to get pre-approved for a home loan so you know what you can afford. You can shop lenders for fees that are charged as well.
 
Contact an agent - Contact a professional real estate agent like myself to learn about the local market and ultimately help you find a home in an area of your choice. 
 
Select an area - There may be more than one area that will work for you so attend some open houses and drive around at various times of day to really get an idea of what an area is like. 
 
Conserve finances - It is important to maintain your consistent financial status during the whole house purchase process for home loan qualification purposes. Avoid starting a new job, opening any new accounts or making larger purchases at this time. 
 
Find a home - Focus on a home’s potential rather than sticking to a strict checklist where during times of slim inventory it’s best to be open to as many options as possible. Walls can be painted and rooms can be updated so long as the core is something you can work with.
 
Shop around for insurance - Insurance is something you can look around for and check for different rates, research bundled discounts or ask if your home has qualifying status for discounts like an alarm system or the like. 
 
Pay attention to information security - A lot of personal information is passed around during a home purchase. Be mindful of who you are giving your personal details like social security numbers, bank info, and the like. Make sure to work only with trusted and reputable professionals.
 
Review closing documents - Your closing docs are very important as they are what solidifies your deal. When you are given your final versions a few days before closing, be sure to review thoroughly for accuracy, correct spelling of names, etc and make sure amounts are what they should be. 
 

What To Avoid

Home searching before pre-approval - Don’t get yourself too excited by looking at home before you know if you can afford it. Only a lender will be able to officially tell you how much you can spend.
 
Don’t wait to save 20% for a downpayment - Yes, 20% is an ideal amount to put down to avoid paying mortgage insurance but there are many loan programs that require much less, some as little as 3.5%!
 
Don’t get emotional - Try to keep it all business so you don’t regret making any quick, emotional decisions. Also, sometimes you may get outbid on a home these days too so keep your chin up!
 
Don’t skip your research - Don’t just go by what a listing description may tell you - be sure to view homes in person and certainly follow up with a home inspection on a home you submit an offer on. Don’t just go by simple mortgage calculators for estimating payments either. Not all include everything such as an HOA due, extra insurance needed, or the like.
 
Don’t forget about closing costs - Many times buyers are so worried about saving for a down payment that they forget about closing costs - and those can be substantial too. Expect this to fall somewhere between 2 and 5% of the purchase price. 

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