Buying a home is one of the most monumental moments of your life. It brings a great feeling of accomplishment, especially when you are buying a house in Florida. It’s really a great place to live! Regardless if you’re retiring or still raising a family, there are cities that offer something for everyone. Yet still, don’t let your judgement get clouded by your excitement of the opportunity – there are mistakes you need to avoid!
Let’s take a look at a few “Don’ts” so you can avoid these common mistakes.
Don’t Open New Lines of Credit
When applying for a home loan, potential lenders will look at your credit report. They will examine items such as your credit score, available credit, debt to credit ratio, and so on. Accepting new credit offers or opening new lines of credit while waiting to close on a home can actually negate the deal you are working on.
When lenders see that you’ve opened new lines of credit, they may cancel your pre-approval since changes have been made to your credit report. Rather than accept new offers you receive, it’s best to wait until after you’ve closed on the home and the home buying process is complete.
Don’t Use Your Existing Credit Cards
For many of the same reasons as above, it’s not advised that you use credit for anything during the process of buying a new home. Using credit cards will, again, affect your credit report and debt-to-credit ratio. While some creditors take longer to report changes to the credit bureaus, some report this information faster. Always remember that making any changes to your credit report can not only delay the process, but it could lead to a complete cancellation of the deal.
Don’t Underestimate the Value of a Realtor
Sure, there are lots of websites and apps available for use, and you may not think it’s worth your time and money to use a realtor. However, finding an experienced agent can help you more than you realize. Not only are they knowledgeable about the local market and what types of homes are available, but they also have access to the MLS (multiple listing service), can negotiate prices well, and are great with competing against other buyers.
However, a real estate agent isn’t always necessary. When buying a new construction tract home or from investment sellers, like companies that buy houses for cash, you may prefer to forego an agent. If you feel comfortable handling negotiations on your own, you could work directly with these professionals. These companies regularly work with highly-rated Title & Escrow companies that can walk you through the process. You can also consult a real estate lawyer to review documents as needed, which is always advisable regardless of having an agent or not.