Posted by Kayla Fikany on Friday, March 26, 2021 at 9:02 AM By Kayla Fikany / March 26, 2021 Comment
Raise your hand if you have ever thought "I would've handled that situation differently if I had only known better."
We've all been there; however, we never want you to have regrets during the home buying process. To provide some insight, we compiled the Top 5 Mistakes that homebuyers tend to make while they are under contract on a home.
The Top 5 Mistakes That Homebuyers Make While Under Contract:
(1) Doing anything that alters your credit score. Making any new purchases on your credit card, purchasing a new card, or opening a new line of credit can all affect your credit score. More credit inquiries or purchases will affect your debt-to-income ratio and lower your credit score.
(2) Skipping home inspections. The purpose of a home inspection is to make sure there aren't any major issues or repairs needed on the home prior to you purchasing it. By skipping the home inspection, you risk being surprised with a major repair issue at the closing table.
(3) Missing or being late on any payments. While under contract, it is vital to make sure all of your payments are current and on time, whether that be a rent payment, a utility payment, or a credit card payment. Being late or skipping payments can all be reported to the credit bureau which will negatively impact your credit score and that brings us back to not doing anything to alter your credit score.
(4) Quit or change jobs. When you are pre-qualified for a loan, the lender is basing that on your current income. Any changes to your income may affect how much you are approved for in the end.
(5) Misunderstanding the home appraisal. Most often, the home appraisal comes back either below or above the sale price of the home. If the appraisal comes back lower than the sale price, it does not necessarily mean that it is the responsibility of the seller to lower the sale price to meet the appraisal. While that is an option, the buyer may actually have to come up with the difference, or the buyer and seller can meet in the middle.
Have more questions? Let us know in the comments or reach out to us on our Contact page, found here: https://www.zrealestate.com/contact/
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