Buying a home is a long and challenging process. There are dozens of decisions you need to make, which can be very scary. It’s alright to get lost in the excitement of it all, but make one mistake, and you will be regretting your decision for years.
“Knowledge is power.” How many times have you heard this phrase? When it comes to buying a house for the first time, the only thing that will ensure the process goes smoothly is how much you know about the local market. Of course, not anyone knows this kind of information, so you need to hire an Orlando realtor to help you with every step.
Let’s take a look at some of the mistakes you can avoid by having a professional by your side:
Not Getting Pre-Approved
Getting a pre-approval letter is the most important step of the house buying process. It gives the realtor the green light to show you houses on the market. It also allows you to determine whether you will get a loan and how much you can afford it. Moreover, it shows the seller that you are serious about buying the house.
Using Your Credit Card Carelessly
A real estate agent will connect you with multiple lenders, who will offer you loan options based on your budget. The lender will first pull your credit report to determine how much of a house you can afford. If your credit score is in the “Poor” range, be prepared to get unfavorable loan terms, such as high-interest rates. Since buying a house is a huge financial decision, you need to use your credit card wisely to maintain a “Good” credit score.
Involving Your Emotions in the Process
Don’t get emotionally attached to a house. Imagine falling in love with a house, only to find out it is way out of your price range. A counteroffer by your real estate agent is rejected, and you decide to buy the house anyway. This decision will cost you a lot in the long run because you might not be able to make the monthly payments, leading to foreclosure.
Making a Small Down Payment
If the down payment is small, you’ll have to apply for a bigger loan and pay higher monthly payments. To avoid this, make a 20% down payment to easily afford the loan. Keep in mind that if you make delays in the payment, your credit score will be affected, which will deprive you of applying for future loans.
And these are the most common home-buying mistakes that many people make. Hence, you need to have a Windermere Florida realtor by your side to assist you in the process. Knowing the current local market, they will be able to direct you at every.
If you plan to look into Orlando real estate, visit the Megan Dowdy Realty website. For further information, call 407-509-9279.
