Here are four things you shouldn’t do when buying a house in Massachusetts or Connecticut to help you from making these mistakes. The last thing you want to discover after weeks or months of looking for the right home is that you can’t afford it. There are many common blunders made by home buyers that lead to this situation. The majority of them were financial blunders.
1. Don’t Overreach and Don’t Be Emotional
When buying a home in Massachusetts or Connecticut, the most common mistake buyers make is overestimating their ability to pay and purchasing too much property. They end up with very little financial wiggle room as a result, and are constantly on the verge of defaulting on their mortgage loan and facing foreclosure. There are two things you can do to stop this.. . .
First and foremost, keep in mind that the expense of purchasing a home extends well beyond the monthly mortgage payments. You must also account for the following one-time and recurring expenses:
- Closing costs
- Attorney fees
- Repair/maintenance costs
- Property taxes
- Homeowners insurance
- HOA fees
- Private mortgage insurance
Another thing to consider is to keep the feelings out of your decision-making. Emotional attachment to a home will prevent you from evaluating affordability objectively. Your agent will assist you in avoiding this blunder and keeping you on track. Contact a Massachusetts or Connecticut agent at 413-455-0008 for more information.
2. Don’t Damage Your Credit Score or Open a New Line of Credit
Furthermore, when purchasing a home in Massachusetts or Connecticut, you should avoid damaging your credit score or opening any new lines of credit.
Keep in mind that every time a company checks your credit report, your score takes a hit. These minor blemishes may not seem important, but they add up when your score is on the cusp. If you’re trying to get preapproved for a mortgage loan and your score is only slightly over the cutoff, every point counts.
Similarly, even though the transactions on which you open a line of credit seem to be essentials, do not open a new line of credit. For example, you may be tempted to purchase new furniture to furnish the new home you’re about to purchase. If you don’t have the cash on hand, however, you can wait. If you open a new line of credit, your debt-to-income ratio may be thrown off, and you may not be able to get a mortgage.
3. Don’t Miss or Be Late on Payments
When purchasing a home in Massachusetts or Connecticut, you should avoid missing or being late on any payments. Even a small blunder here can have a negative effect on your credit. As a result, make sure to pay the bills on time.
Assume you’re currently paying off a mortgage. If you miss a payment, it will have a negative impact on your credit and your ability to purchase a new home. Many lenders would make you ineligible for a loan for at least a year if you do this.
Even less important fees, such as energy bills, should not be overlooked. And if you miss a payment months in advance, it might jeopardize your ability to obtain financing to purchase a home in Massachusetts or Connecticut. Even if a missed payment doesn’t drop your credit score below the cap, you could need to reapply for a mortgage loan, which may mean missing out on the home you really want.
4. Don’t Change Jobs
You should stop changing jobs when purchasing a home in Massachusetts or Connecticut. Even a promotion to a better position can be a hindrance. Any change in employment status could cause your lender to doubt your financial stability, making you a higher risk.
Going from full-time to part-time, or from salaried to commission, for example, would undoubtedly raise red flags with your lender. However, industry experts advise that while going in the opposite direction to a better position would not affect your closing, remaining in your current position is still preferable.
Bonus: Don’t Fail to Work With a Massachusetts or Connecticut Agent
Last but not least, you can work with a reputable local agent. Your Massachusetts or Connecticut agent will assist you in avoiding the blunders mentioned above, as well as the many others that clutter the road to home ownership. And we have the agents who can give you the crucial advice you need. Mass Property Buyers, if buying a home in Massachusetts or Connecticut is on your mind, call us today at 413-455-0008.