Avoid These 7 Steps Before Closing on Your New Home
Buying your first home can be intimidating - there are many lengthy procedures and strenuous legal formalities to endure. These processes are necessary for purchasing a new property, so dealers advise buyers to not be tempted to skip steps along the way. It could wind up costing a lot more and cause issues in the future.
At Credit Lift, our main goal is to help first-time homebuyers score the best possible deals on their mortgages without any worries. Keep reading to find out what NOT to do before finalizing a mortgage deal.
Don’t Skip Title Search and Insurance
Simply put, this step provides legal safety to the new owner of the property that no one else will be claiming their property. In addition, title search allows public records surveys to make sure there are no past owners, and insurance protects the owner from financial losses in case of any complications with the title in the future.
Negotiate on Miscellaneous Costs
Many first-time homebuyers are unaware of the extra costs and expenses that come with closing on a mortgage. Inspection costs, attorney fees, and other expenses can cause a massive dent in your finances if you choose not to negotiate them.
Don’t Skip the Home Inspection
Physical home inspections are an essential step before closing in on your mortgage as it allows you to inspect the property, its surroundings and be aware of any potential problems. If you happen to come across any issue in the inspection, you can have the option of backing out of the deal or having it fixed by the seller.
Don’t Skip the Pest Inspection
Pest inspection involves a specialist ensuring that the property does not have any pests or insects that can damage the property if not treated immediately.
Don’t Be Shy To Renegotiate
While you may have already made an offer on the property, a physical inspection allows you to renegotiate the previous offer if any repairs are needed.
Don’t Switch Jobs
A steady source of income and a stable employment history are essential factors of consideration in the process of loan approval. Switching jobs in between purchasing a house can delay the process of getting the loan and closing your mortgage.
Don’t Increase Your Credit to Income Ratio.
New home buyers are often advised not to increase their credit ratio close to purchasing a property. This is because increasing your credit can cause an increase in debt to income ratio, which can be suspicious for the lender.
Learn More About Us!
Are you struggling in the stressful process of purchasing your home? Learn more on how to close in on your mortgage with ease with Credit Lift.