Things You Need to Know Before Buying a Home
There are many ways you can mess up the home financing when buying a home. Therefore, you should be extremely careful until the sale has closed. It is very easy to make mortgage mistakes when you are dealing with a bank, so choose a mortgage broker that will guide you through buying your first home.
Here are 7 things you need to know before buying a home:
Do not miss loan payments
It is important to keep your payments current on all your loan accounts. This includes credit cards and car loans. Your lender will look at your credit score again before finalizing your mortgage. So do not miss out on any payments especially before taking possession of your new home.
Consolidating your debt
You should consult a mortgage broker about consolidating your debt. Mortgage brokers will find out the best option for you and tell you how much you can afford for monthly payment on your debt consolidation.
Do not shift your finances
Be careful of shifting your finances around before getting your mortgage loan. You need to keep in mind that your lender pre-approves you based on your existing situation. Many first-time home buyers make the mistake of shifting their money around. However, this is a mistake because it complicates where your down payment is coming from.
Avoid buying a car
There is no doubt that buying a car while buying a home is a mistake. Remember that you need to keep in mind that lenders pre-approve you based on your existing situation. Therefore, you should avoid buying a car because adding the debt that it brings may make you unable to get the mortgage for your home.
Related Article: Buying A Home: Step One Mortgage Pre-Approval
Do not buy furniture or household goods on credit
Another mistake you can make as a first-time home buyer is buying furniture or household goods using credit. You need to avoid taking on new debt at all costs because added debt will change the state of your credit that can lead to the loss of your mortgage approval.
Do not let anyone make inquiries into your credit
You need to protect your credit especially when you are in the process of buying your home. Avoid applying for a credit card or even a cell phone service because these involve making a credit inquiry. So you need to avoid anything that needs your credit checked because it will affect your credit score.
Here are other tips you need to know as a first-time home buyer before buying your home:
Find the right real estate agent
Your home is about how you feel when you walk through the front door. It is important to find the right real estate agent to help you find your first home. Real Estate agents will help you find the right property, whether it is a condo, detached, semi-detached, or townhouse. You can contact The Pillar Real Estate Group to help you find the right property. They specialize in Toronto Real Estate with a focus on Houses and Condos for sale in North York.
Do not skip out on a home inspection
Make sure you do not skip out on a home inspection when buying your first home. A home inspection will examine the condition of the home such as the furnace, plumbing systems, and air conditioning. For example, you do not want to buy a home that has a leaky or flooded basement because basement waterproofing is expensive. Therefore, home inspections will help you to avoid a costly mistake by buying a home in need of major repairs.
About Hotline Mortgages
With access to a vast network of over 300 lending institutions – including mortgage investment corporations, private lenders, major banks, credit unions, trusts and other national and regional lenders, I have the tools to build a customized mortgage plan, with the features and options that meet your needs.