Homebuying 101: Navigating the Dos and Don’ts with Ease

Buying a home is one of the most significant financial decisions you’ll ever make. It’s crucial to approach the process with caution and consideration to ensure you make the right choice. To help guide you through the homebuying journey, here are some essential dos and don’ts:

Do:

• Get pre-qualified. Before you start house hunting, get pre-qualified for a mortgage. This will give you a clear understanding of how much you can afford to spend and will make you a more attractive buyer to sellers.
• Work with a trusted real estate agent. A good real estate agent can be your best ally in the homebuying process. You will be spending a lot of time with your agent, so it's important to work with someone you trust and who will help you navigate the process from start to finish.
• Provide required documents promptly. Submitting all requested information in a timely manner can help prevent delays and streamline the process.
• Maintain financial stability. Do your best to keep your finances stable as you prepare to buy a house. Changes in income or employment can impact your loan approval. Consistency is key.
• Prioritize homeowners' insurance. Getting your insurance set up early ensures you have the proper coverage, gives you peace of mind, and helps eliminate closing delays.
• Keep your lender in the loop. Your lender is here to help provide guidance, expertise, and ensure a smooth homebuying process. Make sure to update them as needed!

Don't:

• Make new credit inquiries and large purchases. Aside from shopping around for a mortgage, avoid new credit inquiries or new lines of credit, as they can negatively impact your credit score and mortgage eligibility.
• Assume 20 percent down is the only option. There are several loan types that do not require a 20 percent down payment. Our team of lenders can help you find the loan that's perfect for you.
• Make large deposits. Unexplained large deposits or transfers into your bank accounts without documentation can impact your loan approval.
• Overlook long-term needs. When looking at properties, consider how this will align with your long-term goals and lifestyle aspirations. It's worth doing some extra research to find the home and neighborhood that are right for you.
• Forget to plan for "extra costs." On average, homebuyers may need an additional 1.5 to 4 percent of the purchase price to cover costs such as insurance, taxes, title insurance, moving costs, etc.
• Make late payments. Avoid making late payments because they can adversely affect your credit score.

By following these dos and don’ts, you can navigate the homebuying process with confidence and make a smart investment in your future. With careful planning and consideration, you can find the perfect home for you and your family. Contact one of our mortgage lenders today for more information or to begin the prequalification process.