Buying a home isn't rocket science. However, somehow, someway, we all still hear horror stories of missed closings, different rates at the settlement table, or points to pay that were never agreed upon. Worse off, in some situations home buyers are put in such a bad situation that they never actually get to buy the house. Their overjoy turns to utter sorrow.
This list could have 100+ tips. Here are just a few things that you can do to help your home buying event run smooth.
Don't shop for interest rate. Shop for a lender that knows what they are doing.
You want a great, competitive rate, that goes without saying. And this is still important. But proper structuring of a loan can not only get you into a home, but the long term benefits of "better advice" versus "better price" will save you thousands. It will also create a far safer post settlement scenario. After all, who wants to settle on a home with no money left in the bank? When financing is not well structured, a home goes from a dream to a stressful nightmare.
Although you have a family member/co-worker/friend-of-a-friend that is a real estate agent ...
... they may not be the best agent for you. Believe it or not, these people don't always know what they are doing, worse off they are not always out for your best interest, both because they don't know what they are doing and because their very sporadic real estate paychecks are so overdue they would do anything to get another paycheck, even if that means acting not in your best interest. Working with family and friends can be great, but don't assume that just because they know you that they are good at what they do or that they are going to put your needs first.
Work with a lender that has in-depth knowledge regarding credit scores and credit restoration.
Consider these example situations that could arise when a home buyer's credit is "less than perfect"
- Your credit could be low - and good advice could help your credit score to be high enough for a mortgage approval.
- Your credit could be low - and bad advice could cause you to not qualify for a mortgage at all.
- Your credit could be good - and good advice could raise your score and help you get a lower rate.
- Your credit could be good - and bad advice could lower your score and even disqualify you for an approval.
There are real estate professionals that shoot from the hip advice that is inaccurate. It is hard enough in this market to qualify for a loan. Be very careful about working on your credit and the advice you take-in. Don't be afraid to do some research yourself. A bad move could keep you from buying a home for months or even years.
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