7 Common Homebuyer Regrets You Want To Avoid
Most homebuyers don’t regret becoming homeowners. In fact, owning a home is one of the biggest contributors to lifestyle satisfaction. But this doesn’t mean that these homebuyers don’t have regrets about their buying choices. Most new homeowners will happily share some of the mistakes they made and how they could have avoided them. Fortunately, you don’t need to learn from your own mistakes. Here are the 7 most common homebuyer regrets. 1. Spending Too Much – There’s nothing wrong with stretching a little but overpaying for what you really need is the largest regret most new homebuyers have. 2. Not Shopping for a Mortgage – With interest rates on the rise, it’s important to take the time to look at all mortgage options before choosing. 3. Rushing into the Home Purchase – In a competitive market, it may feel like you need to move quickly, but some homeowners later regret the house, the neighborhood, or the city later. 4. Miscalculating the Cost of Homeownership – There are a lot of extra costs to homeownership: maintenance, repairs, upgrades, taxes, insurance, etc. 5. Underestimating the Time or Cost of Renovations – Oh those HGTV shows that make renovations and upgrades look easy. Often, new homeowners find they are incapable of doing the work and wind up with half-finished or poorly completed work. 6. Choosing a Home that Doesn’t Fit – It’s easy to fall in love with a great view or chef’s kitchen, but if you need 4 bedrooms, then buy a home with 4 bedrooms. 7. Not Using an Agent – It’s more common than you think for a homebuyer to walk through an open house and use the seller’s agent to “save money.” They may get a small credit due to lower commission, but they lose having their own advocate in the process. No one wants to look back at their home purchase and have regrets. Consider these common mistakes before you head out, so you can buy the right home at the right price for your needs
Tips For Making A Competitive Offer
Most areas of the country are experiencing a brisk real estate market. Well priced homes are moving quickly and often sellers have multiple offers from which to choose. How can you make your offer stand out and put you in a better position to get the home? Fortunately, there are a few things you can do to make your offer more attractive to sellers. 4 Tips for Making a Competitive Offer 1. Offer A Fair Price - When the market is moving quickly, this is not time to throw out a low-ball offer and hope they negotiate. Write an honest price based on market values. 2. Have A Pre-Approval Letter - It may not be enough to simply offer a pre-qualification letter. When issuing a pre-approval, the lender verifies your qualifications and an underwriter gives preliminary approval based on the actual home and a good appraisal. 3. Flexible Timing - Not everything comes down to price. A seller who is relocating might be more interested in an offer that gives them extra time to move. 4. Attractive Terms - Most offers include contingencies for items like appraisal, inspection, title, and loan approval among others. Working with your lender and real estate agent, consider removing any contingencies you don’t need. If you plan to remodel extensively, for instance, you might remove the home inspection contingency. This provides more confidence in your offer vs the competition. The most important thing in a competitive real estate market is being prepared. Working with your lender and agent, you will understand your options and be able to write a solid offer quickly, putting you in the best position to have your offer accepted.
FICO Shock? Your Lender Can Help With A Rapid Rescore
If you’re ready to buy a new home, you know that a good FICO score is critical to the process. Your FICO affects not just your ability to buy a new home, but the interest rate and fees you’ll pay for the new loan. Often, buyers are shocked to realize their credit score is not as high as they thought. Even borrowers who always pay their bills on time can be surprised by a lower FICO score when they apply for a loan. Fortunately, your lender can help with a rapid rescore process. A rapid rescore is initiated by your lender to boost your FICO in days. Most lenders offer this service and will start by reviewing your credit report with you. Lenders use what’s known as the “middle score,” in determining risk. There are three credit bureaus – Transunion, Equifax, and Experian – and they each calculate your score a little differently. The middle score is used for most home loans as your FICO. Your lender has a program which can estimate your rescore based on removing false reporting or lowering the balance on a credit card. Even paying off one card can raise your score by 20+ points, enough to make a huge difference in your mortgage interest rate. Once the steps are determined and taken, they then request the credit bureaus to verify the report. This takes a few days. Then the new score will be available to the lender to use for your loan. If you are considering a new home loan, it’s important to know your credit score ahead of time, when you can still correct mistakes. But, if you are already in the process, your lender may be able to use the rapid rescore process to quickly increase your score and offer you a better loan.
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