It’s an exciting time! You’re ready to purchase a home – either your first home or you might be a move-up buyer. Either way, you’ll want to avoid mistakes that can cost you. With a few precautions, you can sidestep costly errors while making your home purchase a pleasant experience.
Being prepared can turn the experience into an exciting time, which is what you had in mind when you began. Besides being well worth the time, avoiding common blunders will save you headaches in the future. What are some of the mistakes you can avoid?
Mistakes That Can Cost You
1. Do You Know Your Credit Score
This might be a good place to start. Why is this important? The higher your credit score, the better chance you have of being approved for a low interest loan. Of course, this is your goal as a lower interest rate makes the home more affordable.
So, start reviewing your credit a few months in advance. With this info in hand, you can correct mistakes and dispute errors on your report. Please don’t minimize this step.
2. Mortgage Pre-Qualification
Many home buyers think the time to pre-qualify for a loan is after you pick the house out. This is one of those mistakes that can cost you, as other buyers have already pre-qualified. This means the seller may look at them as the more serious buyer. They may see accepting an offer from someone not pre-qualified as risky. Therefore, they might turn down your offer in favor of someone who already has a mortgage pre-qualification.
3. Use Your Imagination
Another mistake you’ll want to avoid is sticking with your preferences to a fault. Don’t get me wrong – I want everyone to choose a home they fall in love with, but use your imagination a bit. What do I mean by this? You can replace dreadful wallpaper with something you can live with. You can paint a wall, and carpets can be removed and replaced with tile flooring. You could miss out on a great home because you fail to see beneath the surface of a home.