What Home Buyers Don’t Know
Could Cost Them
With the housing recovery now well
underway — housing starts are up; builder confidence is at a 7-year high;
there are fewer foreclosures; and home prices continue to rise— you may be
inspired to get off the fence and buy that dream home. But are you really
prepared? Here are a few things you may not know — and what you don’t know
could potentially cost you.
Credit
score
When was the last time you checked
your credit score? Any idea how good or bad it is? Are there any errors on your
report that need to be fixed? Long before you begin to house hunt, you need to
know where you stand. The higher your score, the better your interest rate. Get
a copy of your report — for free — at www.annualcreditreport.com.
Mortgages
An astounding 1/3 of home buyers,
according to Zillow, are not prepared to get a mortgage. Among the findings: 34
percent of first-time home buyers are not aware that it is possible to get a
home loan with a down payment of less than 5 percent; 26 percent of home buyers
incorrectly believe that they are obligated to close their loan with the lender
that pre-approved them; and 24 percent incorrectly believe that the best
interest rates and fees can always be found through the bank where they
currently do business. You have to shop around! Get multiple quotes, understand
rates and fees, and read lender
reviews online.
Competition
With the number of homes for sale at
historically low levels, all-cash buyers — typically investors eager to
renovate and resell or rent out homes — are jumping into this rapidly
rising market. And they’re swooping up homes like there’s no tomorrow!
Don’t underestimate this deep-pocketed competition, but don’t take unnecessary risks
(such as waiving inspection contingencies, for example), either, simply for the
sake of getting your piece of the American Dream. You may be inviting trouble,
and that trouble could be costly.
Price
Yes, you guessed it. Because there’s
not much to look at these days (just a few months’ supply in some markets!),
and you’re up against stiff competition, you could easily end up paying more
than you bargained for. Don’t bust your budget! Your monthly mortgage payment
should be 25 percent or less of your monthly take-home pay. Run the numbers
using a mortgage calculator or contact a lender.
Feel free to contact me for more information! I’d be happy to assist you in the home-buying process and get your pre-approved for a loan by a great lender!
Jackie Young
Keller Williams Realty - Lake Norman
704-575-9202
jackieyoung@kw.com
JackieYoungHomes.com
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