4 House Hunting Mistakes to Avoid
While house hunting can be fun and exciting, it can also be a daunting task, especially for first-timers. Buying a home is a big investment, and whether you're looking at historic single-family homes in Charlotte or new construction townhouses in South Jersey, it's important that you avoid these common house hunting mistakes.
1. Not reviewing your credit score. While you may be eager to begin you home search, you first need to make sure you have a good credit score. You can request a free copy of your credit report every 12 months at AnnualCreditReport.com. Home buyers will a high credit score are more likely to get pre-approved for a loan at a lower interest rate. Request your credit score several months prior to your home search so that you have enough time to correct any errors or increase your score before a lender reviews your credit.
2. Not getting pre-approved for a loan. Once you've reviewed your credit score, you should get pre-approved for a loan. Getting pre-approved shows you how much your lender will let you borrow and helps prevent you from falling in love with a home you can't afford.
3. Not understanding what you can afford. The amount you can afford to spend on a home isn't always the same as the amount you've been approved to borrow. It's important that you consider your other financial goals, as well as the hidden costs that come with buying a home, including property taxes and the cost of maintenance and repairs.
4. Waiting too long to make an offer. While you need to make sure you're making the right decision before you put in an offer, waiting too long can have negative consequences. Waiting too long to make an offer may lead to another buyer beating you to it and snagging your dream home.
Keeping these tips in mind when you begin your home search can help simplify the process and ensure you choose the right home for your lifestyle and budget.
