Buying a home? You can’t afford to make mistakes. A simple mistake could end up costing you a lot of money over the life of your loan so make sure you know these 5 things before finalizing your home purchase.
#1. Know your credit score
and report.
It’s vitally important to understand your credit history and what others will be looking at when viewing your credit score and report. If you have a credit score under 650 you might want to take a few months to try and increase that number. Credit scores over 700 tend to have better interest rates and better terms for their loan. Even just a few points higher, could offer you a few points a lower on your interest rate, literally saving you thousands if not tens of thousands of dollars over the life of your loan.
#2. Not shopping around.
Not all banks, credit unions and loan officers are the same. You might be saving thousands of dollars by going one direction versus another but unless you shop around you wouldn’t know this. Just like your shopping for a house, you should be shopping for the best home loan for your options. Talk to a loan officer or manager that is familiar with your credit history, score and your financial situation. They will give you options, programs and fees associated with a particular loan. Then what you need to do is take those figures to another bank and see if they can beat it. Don’t worry about getting your credit dinged several times while shopping for a loan; creditors and lenders are aware of this tactic and know that you’ll be shopping around but it could save you thousands.
Read more: Are You Throwing Money Away? 10 Places You May Be Without Knowing
#3. Not understanding all the costs involved.
There are a lot of costs involved to buying a house. Not only will you have closing costs but you will have the appraisal cost, which is typically $300-$500, the inspection costs, typically $350-$700, and any other expenses with homeownership such as interest, taxes and homeowners insurance. Make sure you are aware of all the costs and fees involved, not just with the initial home loan but with ongoing homeownership so that you’re not surprised and you can prepare for it.
#4. Not understanding the whole process.
It’s vital to educate yourself on the home buying and loan process before jumping in. Knowledge truly is powerful when it comes to buying a home. Understanding the process, the transaction, all the parties involved and more will make you better prepared as a homeowner and make you less stressed. We understanding and knowing what you’re doing will make the process much easier.
#5. Feeling pressured to go with one agent or a loan officer.
Often times when you’ve spent some time with the loan officer you may be obligated to go with them however, if you don’t feel comfortable, simply don’t trust them or you have questions that are not being answered, it’s okay to go somewhere else. Buyers agents on the other hand, spend a lot of time with you so if you don’t feel comfortable, it’s best to let them know up front right away. That way, you can spend the time finding the agent that you really love.
Read more: Are you making your agent’s job harder?
For more information on buying a home or getting along contact our office today. We’d be happy to go over some numbers with you and answer any questions you have about buying within the Brunswick Islands, South Carolina shore and northern parts of North Carolina.