Avoiding Mistakes When Home Buying
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Whether you are a first-time home buyer, or a seasoned one, buying a home can seem like a daunting prospect. There are so many things to consider, both on paper and off, and it is easy to get overwhelmed. From the moment you begin your home-buying journey, we hope this article will ensure the process is as smooth as possible.
Continue to read to find out the most common home-buying mistakes you might come across, and what you can do to avoid them.
1. Delaying the Approval Process Early
It might be tempting to start touring houses the second you decide to move, though it is important to remember that starting with a mortgage pre-approval is crucial. There is nothing worse than finding your dream forever home and finding out after the fact that you aren't able to get approved for the mortgage you need. Avoiding this problem is easy. Before you start searching for a house, ensure you talk to a lender about a mortgage pre-approval.
2. Not Knowing Your Credit Report
Your credit score is perhaps the most important thing lenders consider when you apply for a mortgage. Early on in your conversation about purchasing a home, you should always know what your credit score is by checking it and deciding if you need to boost it before attempting to apply for home financing. Generally, aiming for a credit score of at least 620 is a good rule of thumb. The higher, the better–the more you can boost your credit score, the more likely you can be offered a better interest rate.
3. Putting the House Above the Neighborhood
Karen Baker of Sunset Beach and Beyond Realty had this to say about choosing the right neighborhood:
"You may have found the home of your dreams–but if it is in an unsafe area, has unfriendly neighbors, or makes for an inconvenient commute, it might not be the one for you. Your family's individual needs might vary widely, so it is a good idea for the whole household to explore the nearby community of anywhere you are considering. Thankfully, you will have no trouble finding family-friendly communities ready to welcome you to your Jupiter, FL home with open arms."
4. Assuming a 20% Down Payment is Needed
In the world of real estate, you might have heard that a 20% down payment is required to secure a mortgage on your home. However, this is, in many cases, a myth. Many homebuyers can secure financing with a down payment of as little as 3%. While it might seem counterintuitive to encourage you to aim for smaller down payments, letting go of the "20%" myth will allow you to narrow your focus on what matters–your credit and working on a pre-approval, as mentioned above.
5. Going About Things too Quickly
Buying a home isn't like buying a new car or a phone. It can be exciting to start sprinting once the finish line is in sight, but when doing so, you run the risk of burning yourself out before you can reach the end. Moving too quickly through what is a considerably complex process can come back to haunt you in the form of unexpected closing costs, skipped lines of fine print, and more.
The Bottom Line
Though buying a home is a complex process, it is ultimately one of the most rewarding things you can do. From the complexities of approval processes to choosing the right neighborhood and choosing the right percentage of down payment, there is something that everyone can learn and take notes on as they continue through the process. Let your professional Palm Beach Coastal Realty guide you in finding your dream forever home in the many stunning waterfront Jupiter, FL homes today!
