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The hardest part of buying a home is the process. There are so many questions, and so many documents to fill out, it virtually takes weeks before all your paperwork is finished, and they always seem to ask for something else, and even then there is “No Guarantee” that you’ll qualify or get any money for your home. Here are a few mistakes you need to avoid on your first time!
1. NOT KNOWING WHAT YOU CAN AFFORD
Being able to afford a mortgage payment doesn't necessarily mean you can afford to own a home. Remember to calculate regular maintenance expenses, property insurance, and higher utility bills due to more space.
How can I buy a bigger home than the one I can afford?
This is a trick question... But here’s the answer:
You do it the smart way by making two small steps, instead of taking a risk. You first buy a home you an afford right now, and then a few years down the road you sell that home, take the equity (profit) you realized and use it to purchase a bigger home.
You can also continue saving, but chances are that you will never be able to save as much as fast as you would by getting into one of AnyCredit homes. Remember, our programs allow you to build equity and also profit from potential appreciation.
The market is changing and in a few years you might not be able to buy even what you can buy today. It is always easier to make two small steps to get where you want, than to try to make one big step.
2. SKIPPING PRE-APPROVAL
Before you start visiting open houses, make sure that you are pre-approved for a loan. Pre-approval involves verifying your credit score, income and assets and it is a solid basis for home-shopping.
What is the next step when I decide to get my own financing?
Once you credit improves and you're ready to obtain your own loan, you would contact a lender or a mortgage broker to start your loan application. We can recommend certain lenders, but you are advised to do your own due diligence and find the best possible terms for yourself.
NOTE: it is a smart idea to start working with a mortgage broker from the beginning, and have them guide you through your credit repair process.
3. BEING TOO PICKY
You'll definitely want to make a list of needs and wants and be specific. However, you should use caution: don't think that you're going to buy your dream home on the first try. First time home buyers often have to make compromises due to limited funding, so you may need to accept some outdated cabinetry or give up the extra bathroom.
4. FOREGOING PROFESSIONAL HELP
Realtors have intimate knowledge of the local housing market and communities, as well as a plethora of professional contacts. And since all agents in a transaction are compensated by the seller, there's really no reason to go it alone.
5. BECOMINNG EMOTIONALLY INVESTED
While you should certainly be excited by the prospect of homeownership, you should also be reasonable. Allowing emotion to cloud your judgement could blind you to serious flaws with a property.
Need more help? By joining the Creative Home Solutions Now preferred Buyers List, you will be notified as soon as a new home becomes available in your area. We will guide you on the best steps to take on your new journey!
Call us at (920) 341 5221 or Click the button below to get started!