Purchasing a home is most likely the largest investment you will make and is the cornerstone of a financial plan. Proper guidance and education throughout this process is critical. Follow these 5 tips to avoid disappointment
- Your fist step is to get a Pre Approval form a trustworthy, reputable lender. A lender referral from your real estate agent, friends and family are a great way to place yourself in the hands of a qualified mortgage professional. It is not all about trying to get the lowest rate. It is also about the reputation and service you will receive throughout the process to ensure that you close on time.
- DO NOT apply for any new credit. Your Pre Approval is based on information reporting on your credit report at the time you apply for the mortgage loan. It is VERY IMPORTANT to keep your credit the same, or at leas very similar, through the closing date. Now is NOT the time to go out and buy a new car.
- DO NOT utilize credit cards to purchase new furniture or appliances. Increased credit card debt can negatively affect your credit score and therefore has the potential to cause issues with final mortgage approval.
- During this time, remember to save money for your new home purchase and also save money for reserves allowing you to have money after you close on your home. There are several items you may find that you need when you move into your new home.
- Make sure you are protecting yourself by utilizing a seasoned, professional Real Estate Agent. You want a knowledgeable Real Estate Agent guiding you through the process. This can help you avoid issues and navigate through the complexities of buying a new home.