Buying a home requires extensive planning. Numerous challenges can arise that slow down your progress toward your new home – or stop it altogether. To help you avoid these hurdles, here are a few tips that’ll help smooth your homebuying experience as provided by Rex Homes.
Monitor Your Credit Score
Your credit score is critical to lenders’ ability to determine your mortgage loan eligibility. If your score is too low, you may be unable to secure the funds you need to buy your dream home. Start checking your credit score as early in the homebuying process as possible and work to improve it as you save.
Budget for a Down Payment
Your down payment should equate to 20% of the house’s asking price. To improve your chances of affording this hefty sum, you’ll need to start saving as soon as possible. Submitting a suitable down payment will not only secure your purchase, but it can significantly decrease your monthly mortgage payments in the future. If possible, save more than 20% to gain an advantage on any competing offers.
Decide on What You Want vs. Need
Preparing to buy a home is an extremely exciting process. Yet, you need to keep sight of what you want vs. what you need. If you place too much emphasis on the “wants,” you risk compromising your budget and overlooking the necessities. Get these details ironed out before committing to a purchase.
Set Realistic Standards
The dream home you’ve imagined for years may not be realistic for your current financial circumstances. A three-story home with a pool and spa would certainly be phenomenal, but it’s not feasible. Set realistic standards for your new home, and you’ll have a much easier time finding a home that meets your criteria and budget.
Stick to Your Budget
Once you’veestablished realistic criteria, you’ll need to ensure that your choices fall within your budget. As you’re house-hunting, double-check the asking prices of each home. This way, you can avoid getting your hopes up for a house you won’t ultimately be able to buy.
Be Aware of Surprise Fees
Remember that buying a home isn’t only about the down payment and monthly mortgage payments. There are many more costs associated with homeownership, including closing costs, maintenance fees and utilities, home insurance, Homeowner’s Association (HOA) fees, and more. Be aware of these surprise price tags before you jump into buying a new house.
Get a Pre-Approval Letter
Though you already have your set budget, a pre-approval letter helps you to solidify your spending limits. This is because a lender may be unwilling to give you the full amount you’d planned on spending. Once you’re ready to narrow down your housing options, having a pre-approval letter can help you make a final decision on the perfect home.
Have the Home Professionally Inspected
Not all houses are made equal. After you make an offer, you’ll need to verify that the home was made to code and that there will be no sudden repair needs by hiring a qualified professional to inspect it. Doing so just might save you thousands of dollars in the future.
Work with a Mortgage Professional
A mortgage professional is crucial in ensuring that your homebuying experience goes smoothly. They’ll guide you in making the best possible financial decisions and help you in choosing the perfect lender for your circumstances. Get in touch with a mortgage professional today to get closer to the home of your dreams.