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If the time has come for you to enter the homebuying market and purchase a home, you may be looking at a number of different themes, terms and concepts that can be a bit overwhelming when taken together. With everything you're likely thinking about, it pays to have some guidance as you enter this process, especially if you're doing so for the first time.
At Primary Residential Mortgage in Mt. Juliet, we're proud to provide a wide range of mortgage loans to clients, from programs ideal for first-time homebuyers (such as FHA loans) to several other. In addition, we're happy to serve as guides to our clients, walking them through the entire homebuying process and steering them clear of any pitfalls along the way. Here are some simple dos and don'ts for those entering a mortgage application or homebuying situation.
DO Get Pre-Approved
One of the first and most important steps in the homebuying process is to get pre-approved for a mortgage loan. This will give you a much better idea of how much house you can afford and what kind of interest rates you can expect. It's also a good way to gauge your own readiness to buy a home, as it requires some financial self-reflection.
To kick this process off, get in touch with a mortgage professional like those at Primary Residential Mortgage. We'll help you understand the different types of loans available and find the one that makes the most sense for your unique situation.
DON'T Underestimate Credit
From pre-approval to several other steps along the way, your credit score will play a big role in the homebuying process. Lenders use credit scores to determine everything from the interest rates you'll be offered to whether you'll even be approved for a loan in the first place.
With that in mind, it's important not to underestimate your credit or think that it doesn't matter. Make an effort to understand your credit score and what you can do to improve it before beginning the homebuying process.
DO The Proper Research
Simply put, you aren't going to be able to waltz into a homebuying situation without doing your research first. Not only do you need to have a good understanding of the market and what's available, but you also need to know about recent trends, current events affecting the market and more.
One of the best places to start is by working with an experienced loan officer and real estate agent who knows the ins and outs of the market. At Primary Residential Mortgage, we work with a network of some of the best agents in the business. We can help you connect with one who meets your needs and who can help you navigate the market effectively.
DON'T Try to Go It Alone
While there are certain areas of life where a DIY approach can work just fine, the homebuying process is not one of them. In fact, trying to go it alone can be a recipe for disaster, leading you to miss out on key steps, overlook important details and more.
For example, most people don't have the in-depth knowledge of the real estate market that's necessary to get a good deal on a home. As a result, working with an experienced real estate agent is a must. The same goes for finding the right mortgage loan. Unless you're a financial expert, it's impossible to know all of the ins and outs of the different types of loans available and which one is best for your needs.
DO Prepare for Negotiations
Negotiations are often an unavoidable part of the homebuying process. In fact, even if you're not the type to haggle over prices, there's a good chance that you'll find yourself in a negotiation at some point.
With that in mind, it's important to be prepared for this eventuality. Do your research on fair market value, brush up on your negotiation skills, and learn about the kinds of elements that typically are included in a homebuying negotiation.
DON'T Make Major Purchases
Most loan officers and realtors will strongly recommend that, while you're in the loan application or closing process, you avoid making any major purchases. This can include buying a new car, taking out a loan, opening a new line of credit or anything else that could potentially impact your credit score or financial situation.
Making a major purchase during this time can jeopardize your ability to get a loan or close on a home, so it's best to avoid it if at all possible.
DO Stay Calm and Collected
The homebuying process can be stressful, especially if you're doing it for the first time. With so much on the line, it's natural to feel a little anxious about the whole thing.
The key is to stay calm and collected throughout the process. This means not rushing into anything, staying level-headed during negotiations and being patient when things don't go according to plan.
DON'T Change Jobs
Similar to our note above about making major purchases, it's also generally not a good idea to change jobs while you're in the middle of the homebuying process. Doing so can make it more difficult to get approved for a loan, as lenders like to see stability in employment.
If you absolutely must change jobs during this time, be sure to notify your loan officer right away. They may be able to work with you to get the loan approved despite the job change.
For more on the dos and don'ts of the homebuying and mortgage process, or to learn about any of our mortgage rates or home loan services, speak to the team at Primary Residential Mortgage today.
*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.