14 Things to Avoid Before Buying a House
Many first-time home buyers are surprised to discover just how many ways you can mess up a home purchase. You may have got your pre-approval, found a home you loved and made an offer. But if you want to avoid messing up the transaction, you will need to be extremely careful until the sale has closed.
Keep reading as I tackle what not to do before buying a house. Many of these items are mortgage mistakes that can be easily avoided. If you have an exceptional mortgage broker or real estate agent, more than likely a few of these points have already been mentioned.
Use the following tips to protect yourself and your home purchase. In fact, be sure to check out what you should do before buying a home. These twenty tips will help you make the best buying decision possible.
Making mistakes is easy when you have never bought a home before. Avoid these home buying mistakes to keep the stress out of your life!
1. Don’t miss loan payments.
You must keep your payments current on all your loan accounts, including credit cards and car loans. The lender will look at your credit again before finalizing your mortgage, and if you have missed any payments, it may lead to you losing the loan.
Many buyers mistakenly believe that once the lender issues their loan commitment, they are golden. This is NOT the case!
Lenders have the power to revoke a mortgage commitment and will do so if they see fit. Not too long ago a buyer was purchasing a home I listed in Millbury Mass. The buyer had been selling and buying a house simultaneously. They closed on their existing home but didn’t make their last mortgage payment.
Unfortunately, this was flagged on their credit report and prevented the buyer from getting the loan for their new purchase.
They had to apply at a new bank under a different program (FHA instead of conventional). Needless to say, this caused their purchase to be delayed, and in the process, they lost thousands of dollars.
2. Be careful before you consolidate your debt.
Debt consolidation can be tempting when you finally start looking at buying a home. Most consolidation offers make it possible for you to bring all your debt under one umbrella payment, which makes sense for some people.
Source : https://www.maxrealestateexposure.com/what-not-do-before-buying-home/