The process of buying a home is often compared with a game of chess. The purchaser needs to negotiate and make a lot of tricky moves before becoming a property owner. Having a plan and assistance of a real estate agent can uncomplicate the procedure.
Here’re four things that realty brokers or real estate agent suggest buyers avoid before sealing the deal
Real Estate Agents should suggest buyers meet more than one lender
In most cases, buyers who opt for a mortgage with a more extended repayment period manage to get a lower interest rate. However, closing costs remain high on such loans. Thus, if the borrower plans to refinance or pay off the mortgage within a few years, it is advisable to opt for a lender offering a loan with low closing costs. But remember, too many applications can result in unwanted phone calls and a negative impact on the applicant’s credit score. So, agents recommend borrowers approach mortgage companies and banks with an established relationship. Compare all the offers, and go with the best deal.
Don’t hold out for the perfect house
No doubt, buying a house can prove to be an emotional process. And unfortunately, that’s the reason buyers often end up making mistakes that have far-reaching implications.
Waiting for too long and jumping in too fast both can be equally disastrous. At times, some of them overbid to avoid losing out, resulting in problems during appraisal and mortgage processing. Buyers should keep their emotions aside and be realistic about what they can afford.
Buyers should not forget to dedicate a budget for closing costs
Several studies have stressed on the point that more than 50 percent of homebuyers are caught off guard by high closing costs.
Closing costs consist of charges or fees like document preparation fees, underwriting fees, origination fees, title insurance, etc. The closing disclosure form should be available to borrowers at least three days before closing. Most real estate agents are willing to elaborate on closing disclosures and mortgage terms to assist buyers with their doubts.
Are you seeking accurate details about homes for sale? Connect with a real estate office, and they will assist you in everything from selecting a house to making an offer for the chosen home and closing the deal.
Property buyers should avoid making significant financial transactions before closing the deal
Lenders check the applicant’s credit ratings before issuing a pre-approval letter and once again before giving the final green light (closing). Thus, maintaining a status quo in credit ratings until the closure of the deal remains crucial. Property brokers advise clients not to make a credit inquiry, apply for new credit, cancel a line of credit, or increase the limit on existing credit cards. It is also advisable not to make purchases on the credit card until the property is finalize.