Saving money for a down payment on a home is no easy feat, which is why I started looking into various ways to make sure that I had things sorted out like I should. I began working with a real estate agent to chat about what to do and how to start saving, and they explained how much I needed if I wanted to avoid private mortgage insurance, and when the market typically trended upwards. It was really neat for me to see everything I could do with the advice, and saving became easier after I had a clear goal. Find out more about real estate by reading this blog.
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2 Mistakes That Can Be Made When Purchasing A Home
Cathy Frazier
Buying a home can be an exciting time, especially if it is your first time going through the process. However, there are many things that you may not know about that can cause problems with the home-buying process. Here are some things that you want to avoid as a buyer.
Making Big Purchases During The Closing Process
If your inspection went well and you are waiting for your financing to be approved, you may be tempted to start preparing for the purchase of your new home. If there is a sale at your local home improvement store, you might go out and purchase all of the things that you need for renovating the home after you move in. You may even try to take advantage of opening a store credit card to put the purchases on, which offer no interest financing for a limited time.
As tempting as all of these things seems, you are better off holding off on all major purchases until after you close on your home. That is because your mortgage lender is going to run your credit again as part of the mortgage approval process, and if they see big changes on your credit report, it can raise a red flag on your mortgage. Your credit utilization may have gone up to the point where you are not disqualified for the loan, or you are seen as a risky borrower by suddenly making a lot of purchases on a credit card.
Do not alter your spending during those weeks where your mortgage approval is still under review since it can seriously derail the approval process.
Not Using A Real Estate Agent
As a buyer, there is no reason to go through the home buying process without the help of a local real estate agent. The way that the commission works with the sale of a home is that the seller pays their own agent, who then splits that cost with the buyer's agent. If there is no buyer's agent you do not get to keep that money for yourself since the seller's agent will keep it to themselves.
Buying a home without a real estate agent is a big mistake because there is no harm in using one to help you along. You'll get their advice and expertise about problems as they come up, and they'll even help with negotiating the sale price to make sure that you get a good deal. Meet with local real estate agents to find out that will work well for you.
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