You’ve decided to buy a home. Congratulations!
Whether it is your first time buying a home or you are a returning customer, the preparation involved in this major purchase is similar and, most often, extensive. In fact, there are mistakes that you should avoid making any time you buy a new home, no matter whether it’s your first time or not. In this post, we’ll outline a few of those mistakes and what you can do to avoid them.
Mistake #1- Shopping for a new home without knowing your loan amount.
You’re welcome to look for a home in what you believe to be your price range, however, it is a mistake to trust the mortgage estimates provided by most listing websites. These estimates are often inaccurate and do not take into consideration the rates of the day or your unique financial situation. To avoid this mistake, we suggest you find your mortgage company before you begin shopping. At Southern Trust Mortgage, we offer something called Priority Approval. Unlike the pre-qualification letters issued by other lenders, Priority Approval is a true credit approval issued by our team, guaranteeing your loan amount. Having a true credit approval allows you and your real estate agent to shop confidently, as well as making any offer you put down on a home that much more appealing to sellers who may otherwise have to entertain offers that do not have approvals attached to them.
Mistake #2- Making a large purchase during the loan process
You’ve gotten the approval, your mortgage is proceeding, you’re about to be in your new home… perfect time to finance a new couch, right? Sorry, but no! As tempting as it may be to furnish your new home, avoid making any new purchases, especially those that require financing, such as a buying new car or furniture, until afteryour loan has closed. Making large purchases affects the amount of money you have available and financing large purchases will have an impact your credit score; given that much of the loan process is tied to your credit score, you don’t want to bring your score down. If at all possible, save making large purchases until after you buy your house.
Mistake #3- Changing or quitting your job while buying a house.
It’s true that you only control so much of your employment, but to the best of your ability keep your current employment situation stable while you shop for and buy your home. Mortgage lenders check your income and your continued employment to verify that you will have the income to pay for your home mortgage. If you willingly change your employment situation during the loan process, it may delay or derail your ability to buy a home for a little while.
Mistake #4- Not providing documentation in a timely manner.
Occasionally during the loan process, your loan officer or the team they work with (usually the loan processor, who works in conjunction with the loan officer and loan underwriter to get your loan closed) will contact you and request additional information before your loan can close. The documentation needed can vary from person to person, but usually is needed to explain and verify a person’s credit and income. To make sure your loan closes on time, provide your loan team with the documents requested in a timely manner.
Mistake #5- Not utilizing the help of real estate and mortgage professionals.
Buying a home is a process that is at times intense and arduous; during those moments, it’s easy to feel overwhelmed. The team of people you are working with are there to help you. If you have questions at any point during your home buying process, reach out to your agent or loan officer. They want you to feel informed and comfortable through every step of the home-buying process, and are only a phone call, text, or email away.
At Southern Trust Mortgage, we’ve been helping customers buy new homes since 1998. Our team of loan experts are readily available to help you avoid these and other home-buying mistakes and are dedicated to making the process as easy as possible. Contact us today and let us make home happen for you.