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When the time comes to get that house you have been dreaming of, there's a lot to consider. Loan officers and realtors may give you a lot of info that may only end up confusing you. But there's a way you can narrow them down to understand easily.
You need to learn what not to and what to do early to maximize your chance of getting the house. Below are some dos and don'ts you need to look at when buying a home.
Do's
There are quite a few things that you should do, other than checking out the kind of house you want. They are:
Getting Pre-Approved
You want to shop for houses within your price range. You can speed up the whole process and land a property that you can afford by getting pre-approved. Also, regulations restrict how much a lender can offer you if you are a non-qualified applicant.
Continue Paying Credit Cards/Other Debts
You don't want your credit score to be affected before your deal closes. When you don't pay off your cards or other debts, it can also mean that your hazard insurance cap goes up. You may also lose your dream altogether if there's an indication that you cannot keep up with current debts.
Proper Research
Finding the right house is never a one-and-done deal. You may tour your dream house on the first day of house hunting, but you need to get some in-depth info. You should find out what you're looking for in the property. Another thing you may also want to look at is the neighborhood and evaluate the price range. Would the same house cost less somewhere else?
Get Your Credit Report
You need to check your credit report if you're going to embark on this journey. You also don't want to put a lot of strain on your credit by making inquiries. Get an unsolicited credit inquiry service and stop the unsolicited ones from vendors trying to take up other loans.
Negotiate with the Seller
There are deals to be made when buying a house as the price is never set in stone. Look to negotiate and get to the lowest possible amount. You may be fearful about the whole negotiating process; that's why you shouldn't go at it alone.
Don'ts
Here are the things that you shouldn't do on your way to making your home dream a reality.
Go at it Alone
Buying a home isn't as easy as it looks, and there are a number of unpredictable variables that may arise. Going at it alone may leave you vulnerable to such. You can ask for help from people who have done it before and learn from their mistakes.
Making a Huge Purchase on Credit
Closing a deal on that house may be delayed or even become impossible if you make a significant purchase on credit. First, consult with the lender before you make such a huge commitment. Better yet, don't purchase if it's avoidable.
Change Your Job
Don't change your job before informing your lender, no matter the pay in the new job. The correct paperwork for a job change may take 30 days to go through. At this time, the deal to get you the dream house may not be attainable. There are cases where making such a change may result in the deal being canceled altogether.
Buying a house is a huge step and should be approached with a bit of caution. The above dos and don't may give you an extra edge in the process. You can also reach out to our local expert loan officers to help you begin the pre-qualification process.