There are mistakes to avoid that are normally committed by first-time homebuyers. The buying process is lengthy, and there’s a lot that can go bad if you’re not diligent.
A multitude of roadblocks, ranging from poor appraisals to unexpected credit checks, could hinder or even ruin your acquisition.
Are you looking for a home you want to own? Do you want to make sure your purchase goes smoothly? Then take steps to avoid these all-too-common first-time homebuyer mistakes:
Mistakes to avoid #1: Home Insurance Setbacks
Your lender will want proof of proper home insurance before your loan can be closed. It could cause hiccups if you neglect to get one or if your policy’s start date doesn’t coincide with your closing date.
It’s also possible that a property isn’t insurable. This might happen if the previous owner filed an insurance claim for a high-risk situation, like mold or extensive water damage.
Mistakes to avoid #2: Low evaluation
Many first-time homebuyers are unfamiliar with the concept of appraisals. Simply put, if your assessment is lower than your offer, you may find yourself back at square one. You’ll have to pay the difference, haggle with the seller, or withdraw the deal altogether. Your lender will only cover the appraised worth of your home.
Always do your research before making an offer to avoid this. Analyze nearby comparable sales and ask your agent to assist you in determining an appropriate bid size based on those figures.
Mistakes to avoid #3: Credit issues
Many lenders may run a credit check right before your loan closes. If you’ve made any significant purchases or applied for other loans or credit cards in the recent several weeks, this could be a concern.
Thankfully, this is a simple one to avoid. Simply keep your spending under control in the weeks leading up to your house purchase, and postpone big-ticket purchases like furniture and new cars for after your loan is closed.
Mistakes to avoid #4: Errors on homebuyer loan docs
Your closing can be delayed because of an error on your final closing disclosures or a misspelled name on your loan documents. Before it can be signed and notarized, your lender will need to make changes to the papers.
As a first-time homebuyer, it’s crucial to go over any records you get from your lender as soon as possible. If you find a mistake, notify your loan officer as soon as possible.
Mistakes to avoid #5: Problematic walkthroughs
Do another house walkthrough before your loan closes to ensure that any repairs you asked for were made and that the previous owners had emptied out the property and left it in good shape.
If that isn’t the case, you’ll have to work with your agent to rectify the situation. They may need to request closing cost credits to aid you in covering any additional repairs, cleaning, or garbage removal services that are required as a result of the seller’s negligence.
Be a proactive first-time homebuyer
As a first-time homebuyer, you want your house purchase to go smoothly, so being proactive as the big day approaches is crucial. Keep your expenses in check, go to your walkthrough as soon as possible, and go through your loan documentation thoroughly. The sooner you spot a problem, the less likely it is to impede the deal.
Need Help?
We at A Team Marketing can help you out in your homebuying process! Simply and call us today at 855-66A-TEAM or fill out our contact form here.