Purchasing a home for the first time can be an experience that’s as nerve-wracking as it is exciting. After all, not only will you have to find the ideal location, but you’ll also have to acquire a mortgage that’s best suited to your current financial situation. And with relatively low inventories in today’s local markets and the rising prices of homes nationwide, it can be more than a little challenging to find a home that’s affordable.
You might experience the pressure of getting a property immediately, but you must ensure that your financing is in order before you visit open houses or make offers. Unfortunately, it isn’t uncommon for first-time homebuyers to make some mistakes along the way. To help you out, we’ll discuss the common missteps you should avoid.
Not exploring your mortgage options
Homebuyers risk overspending if they don’t take the time to explore their mortgage options. Checking with different lenders can give you a better idea of how much you’ll be able to afford, as it’ll present you with an opportunity to make apples-to-apples comparisons of various loan products, lender fees, closing costs, and interest rates. More importantly, it can help put you in more favourable positions when negotiating with lenders.
In addition, it’s recommended to work with financial advisors because they help you find better deals for your loans and make the process less complicated. Be sure to find one local to you, like financial advisors in Kent, if you’re located within or nearby the county, to make things easier.
Forgoing the services of real estate agents
Searching for a house to purchase by yourself is complicated and time-consuming. For this reason, it’s a good idea to invest in the services of a real estate professional. With the knowledge and expertise of an experienced agent at your disposal, you’ll be able to narrow down available options and find any issues you otherwise would have missed on the negotiation process and the physical property you’re interested in purchasing.
Opening credit lines
There’s still a possibility of being denied a loan even after you’ve been pre-approved. Most mortgage lenders tend to check the credit of prospective clients during the pre-approval process and right before closing. As such, it makes sense to maintain your finances and credit’s status quo. This means that you shouldn’t open or close any credit lines in the meantime, as it may lower credit scores and elevate debt-to-income ratios, which are reasons for lenders to deny the approval of mortgage loans.
Instead, wait until you’ve closed a deal. In this way, you are more likely to be approved, and you’ll give yourself a better chance to get the desired rates.
Conclusion
It’s much easier to unintentionally sabotage your plans of getting a mortgage and purchasing a home more than you think. Even the most minor oversight can create setbacks and massive headaches. By avoiding these mistakes, you’ll help yourself get what you need to transform your dreams of homeownership into a reality.
