Financing Do’s and Don’t For Home Buyers in Mobile and Baldwin County

Financing Do's and Don't For Home Buyers in Mobile and Baldwin County

Buying a home will probably be the largest financial transaction of your life. It will also be one that impacts your life for many years to come – possibly as many as the next 30 years. It’s critical, then, to ensure that you get it right and don’t wind up paying for an enormously costly financial blunder for the rest of your life. So let’s take a look at the important financial do’s and don’ts for home buyers in Mobile and Baldwin County.

Two Important Questions to Ask First

First, though, before we get into the actual financial do’s and don’ts for home buyers, we need to encourage you to ask yourself two vitally important questions. For everything that follows in the financing and the transaction hangs on the answers to these questions, according to a top money-management site.

1. IS IT REALLY THE RIGHT/BEST TIME FOR ME TO BUY A HOME?

You really need to determine whether it’s the right time for you in light of your unique circumstances and situation. “Don’t buy a home because it’s a buyer’s market or just because of low mortgage rates. Buy a home because you want to be a homeowner. Buy a home because you’re settling down and need a place to live for at least five years. And only buy a home if you’re financially ready.”

2. HOW WILL I AFFORD THE HOME?

You absolutely must determine whether you can and how you will afford the home. Foreclosures often happen simply because people didn’t look far enough ahead or didn’t factor in all the costs of homeownership. “If you remember all the foreclosures that happened during the recession, a mortgage is not something to be taken lightly.”

Financing Do’s for Home Buyers in Mobile and Baldwin County

SEPARATE WANTS FROM NEEDS

One of the very first financing do’s for home buyers in Mobile and Baldwin County is to carefully identify wants and needs and then keep them clearly separate. This way you will be able to compromise and make concessions and so stay on budget while getting the features you need (but maybe not all the ones you want).

KNOW YOUR CREDIT SCORE – EXACTLY

Your credit score will determine in large part whether you can get a mortgage at all and what kind of rate you can get. So if you know your credit score, then you know exactly where you stand in this regard. If your score is low, your best course is probably to try to get it up before seeking financing to buy a home.

INVESTIGATE LESS TRADITIONAL OPTIONS

If you’re among the first time home buyers in Mobile and Baldwin County, you may not have to come up with that huge down payment of up to 20%. For FHA, USDA, and VA loans offer low to no down payment options. And in efforts to build communities, some cities and even employees provide first time home buyer assistance.

GET PRE-APPROVED FOR A MORTGAGE LOAN

If you want sellers to see you as a serious buyer and, as a result, have more negotiating leverage, you will need to get pre-approved for a loan. As one top real estate source puts it, pre-approval “is a written guarantee by a lender or mortgage broker to grant you a loan up to a specified amount. Being preapproved also means that you will have more pull than a competing buyer who is only prequalified.”

SHOP FOR A GOOD AGENT

While this may not seem like a financing do for home buyers in Mobile and Baldwin County, it is nevertheless. Having the right agent has a lot to do with how much you ultimately pay for the home and whether you get any concessions like a portion of closing costs paid. (To discover more about top agents in your area, just call (251) 333-9131.)

Financing Don’ts for Home Buyers in Mobile and Baldwin County

GET OVERLY ATTACHED TO THE FIRST HOUSE

You may think you love it, but just don’t get too attached to the very first house you see. There are likely others out there with more of what you want and at a better price. Here’s what the experts recommend: “So many factors are involved in a successful real estate contract. Talk to your agent about your local market so you have realistic expectations from the get-go.”

MAKE A BIG PURCHASE

Homebuyers in [market-city] should definitely not make any large purchases before all the papers are signed at closing. If you do, you may jeopardize your chances of getting the financing you need to purchase the home. So if you think you need a new car or new appliances, you’d be better off waiting.

SWITCH JOBS

Similarly, you shouldn’t change jobs in the middle of the home buying process. Even if a job change doesn’t keep you from getting a mortgage approval, it will make the whole process lengthier and more difficult.

MISS NEGOTIATION OPPORTUNITIES

This is often a mistake first-time buyers make, but you really should never miss an opportunity to negotiate. How much you pay for the home and how large a loan you’ll need to hang on this. Again, this is an area where your agent can be an invaluable asset.

WAIVE AN INSPECTION

This is definitely a don’t for home buyers in {market_city]. Your lender will likely require an inspection, but if not, have it done anyway. If major problems turn up after the sale, you will have to put them right out of your own pocket.

The Common Thread

Did you notice that running through all our financial do’s and don’ts for home buyers in Mobile and Baldwin County there is a salient common thread? And that is the importance of having a qualified local real estate agent in your corner.

If you’re ready to do it right, we work with home buyers in Mobile and Baldwin County and beyond. Contact us today at (251) 333-9131!

Niaisha Roberts

Expert Realtor providing personalized and comprehensive services. I am dedicated to guiding clients through seamless transactions, leveraging market insights for optimal results. Trust me for integrity, professionalism, and a commitment to exceeding your Real Estate goals.

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