Here are 5 money mistakes that Buyers make and solutions to help you avoid them!!
- Assuming you need 20% down payment. You don’t!! There are fantastic loan programs out there that require as little at 3.5% down and for VA buyers, 0% down payment is possible..
- Opening or closing credit cards. You may want to keep them open – BUT – DO NOT get any new ones during the home buying process.
- Taking out loans for cars or furniture or being a co-borrower.. This is similar to credit cards and very impactful on your debt to income ratio. Your mortgage pre-approval is based on your current debt to income ratio. If you get debt – it may throw off those ratios and jeopardize your home purchase..
- Not saving for closing costs. In addition to your downpayment, you will need funds for closing costs.
- Buying the most expensive house you qualify for. What the bank will give you may not be what you want to spend each month. Focus on where you want your monthly payments at and STICK to that budget.
- BONUS TIP: Talk to your Realtor to learn the final sale price for homes in your desired neighborhood. Due to limited inventory, greater demand, and great competition, homes sale above their initial List Price. Shop within BOTH your List Price and Sale Price range