Avoid these Red Flags when Buying a New Home
When it comes time to buy a new home, the last thing you want to do is send up red flags that could ultimately hurt your chances of getting into your dream home. One of the worst mistakes prospective buyers make is purchasing big-ticket items like cars or jewelry in the days or months leading up to a home purchase.
In fact, a good rule of thumb is to avoid making any major purchases (over $1,000) for a good six months before you even begin the house hunting process. This means no lavish vacations or new appliances. Large purchases are never a good thing when banks go to review your financial information, so it’s also important to stay away from buying furniture, even if you’re planning on using it in your new home.
Another common mistake that people make is constantly moving their money around (taking money from one bank account and shifting it to another, be it stock, mutual funds, a 401K or just another bank account). The problem occurs when lenders look at your financial history and see a lot of big withdrawals and deposits that need an explanation. In the end, this could cause a mortgage provider to back away from the deal.
If you’re looking for a home in a new town or state, understand that the process will take time. If you have a steady job, don’t quit with the hope that you’ll find the house of your dreams quickly. More often than not it takes several months to a year to find the perfect home, and the last thing you want is to be in a situation where you don’t have a job when you find the home of your dreams.
Another thing you’ll want to avoid is jumping at the first house you see. Even if the price is right, if the space doesn’t meet all of your requirements, you’ll most likely end up paying for your decision well into the future. Make sure you know well ahead of time what you want in a home and what you’re willing to concede. The last thing you want to do is make a quick decision without giving yourself ample time to look around.
And last but not least, take the time to find a trusted real estate professional to help you through the process. While you may be confident in your ability to handle everything that comes with the process of searching for and purchasing a home, it’s been proven time and again that having an agent by your side will lead to a better deal, a faster turnaround and a smoother process all the way through.
For more information about preparing to buy a home, contact our office today.