Thinking Of Buying A Home Best To Avoid These Things
Are You Thinking Of BuyingA Home? Watch This Video!
In this new video, Jeanine Corcoran, broker and founder ofCorcoran Connect, shares tips for first time home buyers. If youare thinking of buying a home, her first tip is to make sureyou are pre-approved for a loan.
Isn’t it the other way around? As a matter of fact,no.
Buying a home is a milestone and it is understandable if you arekeen to look at houses. But you don’t want to set yourself upfor disappointment by shortlisting houses and then realizingit’s out of budget. What you want to do is get pre-approvedby a lender so you know how much you can spend. You can thenproceed with the home buying process, with full knowledge of yourfinancial limits.
Jeanine’s next tip for buying a house is to get a brokeror an agent that you trust. You do not need to go to every openhouse in your target neighborhood or check out every ‘forsale’ house you see. What you need is someone who will guideyou through the process, so you don’t spend more time ormoney than you actually need to.
How do you know if the agent is ‘the one’? Readreviews. Or ask for recommendations. Set up a meeting to get a feelof who the agent is. Buying a house is often a lifelong investment,so you need to trust the agent you’re working with. Followyour gut, and don’t be afraid to ask questions.
More Tips For First Time Home Buyers
One of the things to avoid when buying a home is incurring moredebt while waiting to get approved for a loan. That crucial periodshould not be spent shopping for furniture or other high-ticketitems.
This is because the lender will look at your debt-to-incomeratio (DTI). It is the percentage of your gross monthly incomethat you allot for paying debts. The goal is a low DTI ratiobecause it means that you have sufficient income vis-à-visdebt servicing. It makes you “more attractive” tolenders.
If you charge more to your credit card, even if you areconfident that you can settle it on time, that ratio will change.It will create a different picture and it could disqualify you froma loan.
This is where the importance of an expert and a reliable agentcomes in. Part of their job is to remind clients about this crucialfact. First time home buyers tend to get excitable, and this canlead to rash decisions with long-term consequences.
Your agent should be able to guide you through shopping around,not just for houses, but also for lenders. They should also giveyou a heads up on other expenses that you’ll need to preparefor before moving in.
We’ve Got More Tips For You!
We’ve compiled a report about the ‘dos anddon’ts’ of getting a home loan, and you can get it forfree! You can also schedule a consultation if you have specifichome buying questions. Give us a call at 407-953-9118 or check outthe website for more information.