A first time Myrtle Beach home buyer is bound to make mistakes throughout the entire home buying process. This is especially true if the home buyer works alone and has failed to enlist the services of a real estate agent. Additionally, working with a professional lender can also make a huge difference.
Without the services of any of these professionals, first time home buyers are more likely to get confused and commit mistakes. This can result in a loss of money, time and energy.
These are some things a first time Myrtle Beach Home Buyer should avoid doing:
- Do not borrow the absolute maximum a lender will offer you even if you can afford it.
First time home buyers are usually qualified based on their income and debt-to-income ratios. This is because the higher the amount you borrow, the greater the lender’s profit will be. Learning about this will only boost your confidence in buying a house. You may overlook your other financial concerns especially future expenses such as your kids’ education and school costs.
When deciding for an amount to borrow, do not focus on the amount that you need but rather on the amount that you know you will be able to pay off in the future considering your current and future income status. Keep in mind that your expenses and income today may not be the same tomorrow. Therefore, it will be wise to allow yourself a buffer for such sudden changes in your financial status.
- Do not wait until you have found the right house to buy before you get pre-qualified for a mortgage loan.
What a first time Myrtle Beach home buyer often fails to understand is the need to get pre-qualified for a loan as soon as possible. After deciding that you want to buy a house and that you need a loan, the first step is to contact a lender right away. Get pre-qualified for a loan at once to allow for sufficient time to make some changes to improve your credit report, save more money, and increase your income.
- Do not settle for a lower credit score.
A high credit score is important in any form of investment as this is your ticket to getting the best interest rates, terms and dollar savings. If you get a credit score of 680 and above, you can be sure to get good rates and savings. On the other hand, if you earned a credit score of 620 and below, you may want to improve your score first before applying for a mortgage loan.
- Do not choose a mortgage based on your impulse and feelings.
Keep in mind that the mortgage loan will not only help you secure money to buy the house you want, but it will also play a huge role in your personal financial planning. Make sure you choose a mortgage plan that suits your current and future financial status. For best results, seek professional advice from real estate agents