Are you planning to buy a home? Set yourself up for success by preparing and maintaining excellent financial health. Here are the three biggest money mistakes to avoid while you’re in the process of purchasing a home.
Making Big Purchases
If you just bought a car or did advance shopping for furnishings, this will take a big hit on your credit record and debt-to-income ratio and could affect your mortgage application. So as much as possible, avoid making any credit splurges if you’re planning to buy a home soon.
Not Consulting the Lender
We can’t stress this enough — get pre-approved before shopping around for homes. This step is often skipped vital as this is where your financial and employment history is thoroughly reviewed by the lender. They will then decide and approve you for a specific loan amount. You’ll also know how much downpayment is needed. Here are the lender requirements.
You can also speak with your lender about loan programs that are applicable to your situation, and how to move forward with the loan process. Contact us for a lender referral.
Not Minding the Budget
Most people forget to include things in their home purchase budget like closing costs, insurance, and moving costs. Also, one can get too carried away and impulsive by putting an offer on a home that is over their set budget. Stick to the plan to avoid buyer’s remorse.
At Broadpoint Properties, we’re always happy to help people get prepared and go through the buying process with less hassle. If you or anyone you know is interested in purchasing a home, feel free to contact our agents.