Wednesday, November 2, 2011

Avoid Mortgage Mistakes when Buying Your North Shore Home!

Buying a North Shore home is a large financial decision and one that you want to be sure you’re fully prepared to take on. Since there are many beautiful homes currently available on the North Shore Real Estate market, it can be easy to get swept up in finding your ideal home. However, it’s important to pay just as much attention to where you are with your finances and ensure those are in order prior to beginning your home search.

Lenders have tightened the reigns on who qualifies for a mortgage loan, and while you may have good credit; there are a few surprising factors that could delay your home purchase. Below are four tips that will help ensure a successful home purchase!

1. Avoid any major purchases before closing your mortgage loan- Just because you have your mortgage approved and lined up doesn’t mean the deal is done. Banks are not afraid to pull out of the deal if they see the homebuyer makes a significant purchase such as a car or another major buy. They see this as a sign of further debt for the homebuyer and are nervous about the potential risks if the buyer can’t come up with the money. To be safe, avoid any major purchases until after your signed the contract on your North Shore home. This goes for cash purchases as well since banks will look at your cash reserve before you get approved for a loan.

2. Don’t make any big career changes- While this may be the reason you’re searching for a North Shore home, it’s better to avoid any career changes during the home buying process. Banks want to know that your financials are stable. If there is a career change pending, try to delay it until after you’ve bought the home. Or, delay the home purchase if at all possible until you can show that your new job is given you the financial resources to pay on your new home.

3. Prepare for a last-minute credit check- This may come as a surprise to some, but with Fannie Mae’s loan quality initiative that came out in June of this year, lenders are likely to do a second credit check right before you close. Make sure that you keep up with your credit card payments and avoid applying for a new credit card during the home buying process as they may see this as a sign of desperation and can call for another credit score check, which could hurt your credit score.

4. Watch out for closing-cost surprises- Avoid putting all of your money into the down payment as you’ll need cash for closing costs. Don’t be caught off guard! At times, closing costs can be as much as 3% of the home price, so be sure to keep this in mind and set enough aside.

Of course your North Shore Real Estate agent will be able to help you throughout your home buying experience, but having these four tips in mind will help you avoid any mishaps along the way!

If you’re considering buying a North Shore home, but have questions about the North Shore Real Estate market or where to start; let me know! As an experienced North Shore Real Estate agent, I would be happy to meet with you and answer any questions you may have.

Contact me today to get started!

Janie Bress
Your North Shore Real Estate Expert

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