This Article On 3 Mistakes To Avoid When Buying A Home Was PUBLISHED On July 22nd, 2019
Are you ready to buy your dream home, a second home or a rental property?
- There are many mistakes that can be made
- But if you know what they are, then you will avoid these pitfalls
- Not being prepared can cost dearly and stop the entire process from even beginning
- On this article, I will talk about the 3 mistakes to avoid when buying a home
In this article, we will cover and discuss 3 Mistakes To Avoid When Buying A Home For Buyers.
Shopping For A Home Without Being Pre-Approved
The top first of the 3 mistakes to avoid when buying a home is NOT TO SHOP FOR A HOME if you have not been pre-qualified and fully pre-approved by a lender.
- You should not look at houses without consulting with a mortgage lender first to pre-qualify you
- Being that this is the first step to take when buying a home, you can already see how the buggy would be put before the horse, so to speak
- This could pose some problems
Here are considerations to thoroughly think about prior to pulling the trigger on home purchase:
- #1 How do you know you can afford a house?
- #2 How do you know that you are not cheating yourself out of what you really want since you don’t have an estimated purchase price and monthly payments
- #3 How do you know you are ready at all to start shopping for a home
Getting Pre-Approved By A Mortgage Lender
A lender has to take an application and analyze different components of your file:
- It is best not to spend your wheels to avoid any type of negative feelings
- At least if you start off on the right foot, you will know exactly where you stand
HOME INSPECTIONS ARE AN ASSESSMENT OF YOUR HOUSE.
- Ducking a home inspection is like going to a doctor and not let him check you
- A home inspection can cost anywhere from $300-$500 and it is absolutely worth it
- Let me tell you why. A professional home inspector can see things that your eyes cannot
- I had a client who was about to sign a lease-purchase with a seller
- I repeatedly advised her to find a home inspector
- About six months later, she called me back and told me that she wished she would have listened because there was water all over the place
- Whenever she turned her kitchen faucet on, water shot up from the sink and out of every sink in the house
- She was very upset, but to tell you the truth, had she got an inspection, things could’ve gone a little different. #1
- She could have requested that the water issue be fixed before signing the lease-purchase contract #2
She could have simply walked away and kept at least $4500.00 of the $5,000.00 that she
The Dangers Of Co-Signing
DO NOT CO-SIGN FOR ANYONE. I mean ANYONE.
- You might think, well, I’m a cosigner and it’s not my debt
- But on the contrary, a lender considers a debt that you co-signed for as your own liability and it is counted along with your credit accounts unless you can show otherwise
- If you can prove that you do not pay for the account, then the lender will waive it
- You will need the last 12 months of canceled checks from the borrower of the account that you co-signed for
So if someone is pressuring you to co-sign while you are trying to buy a home, I’d suggest that you don’t.
3 Mistakes To Avoid When Buying A Home And Have A Smooth Home Buying And Mortgage Process
Gustan Cho Associates Mortgage & Real Estate Information Resource Center is viewed by many home buyers, sellers, and real estate and mortgage professionals. Gustan Cho Associates at NEXA Mortgage, LLC dba as Gustan Cho Associates are direct lenders with no overlays on government and conventional loans. We are also experts in Non-QM Mortgages and alternative lending programs.
Gustan Cho Associates has a five-star national reputation of having no lender overlays on FHA, VA, USDA, and Conventional Loans. We also originate Jumbo Mortgages and Non-QM mortgages such as one day out of foreclosure, deed in lieu of foreclosure, and short sale. Gustan Cho Associates Mortgage Group is available 7 days a week to our viewers and borrowers who may have any questions related to qualifying for a mortgage loan and the requirements for any mortgage loan program. For more information on this article or any other mortgage-related topics, please contact us at 800-900-8569 or text us for faster response. Or email us at email@example.com.
July 22, 2019 - 4 min read