When purchasing a property, avoid making these mistakes.
To ensure that your financing doesn't fall through, make sure you receive a commitment from your lender. Shopping around without a mortgage pre-approval may result in heartbreak if you find out you cannot afford or put an offer on properties you love. To do a mortgage pre-approval, your lender will check your credit, verify your employment and downpayment, so start collecting all the paperwork necessary for your qualification. We know great local mortgage brokers and lenders, so if you need help, we'd love to put you in touch with people we trust.
Closing costs are typically 1-4% of the purchase price, and while many fees are found in every transaction (e.g., taxes, lawyer fees, etc.), you may incur extra costs depending on the type of property you purchase and the area. Additionally, keep in mind that you may need to upgrade or fix certain areas of your new home, or you will need an unexpected repair not long after your purchase. Therefore, make sure you don't use up all your savings and budget to pay for closing costs, the down payment, moving expenses, and some extra money in case of urgent repairs.
When buying a home, it's important to take your time and thoroughly evaluate the property before making an offer. Rushing into a decision without careful consideration can lead to costly mistakes and regrets down the road. Being too eager may lead to overpaying on a property, missing costly hidden repairs, or missing out on better properties.
Using your credit card (especially for large purchases) without paying it off before closing on your house can potentially harm your credit score and jeopardize your ability to secure a mortgage. This can impact your debt to income ratio along with your creditworthiness. It is highly recommended to refrain from large credit purchases until after closing.