Before searching for Boston real estate for sale search, you first want to make sure you’re pre-approved for your mortgage. In today’s blog post, I’ll list 9 common mistakes home searches make that could make the home buying process much more painful than it has to be.
I’m writing this article because I know how stressful it can be to buy a Beacon Hill condo. In order to make your process easier, I’m going to cover the 9 things you shouldn’t do before you start your Boston real estate for sale home search.
Ever heard the expression “House poor“? Many Boston condo buyers overestimate what they can actually afford and end up with very little wiggle room financially. Before jumping into buying a Midtown condo, make sure you have a realistic idea of the monthly costs involved with owning a condominium.
Remember, there is your mortgage, property taxes, utilities, condo fees, insurance and repairs. Factor in all the costs and leave yourself some room.
Buying a Seaport home is one of the largest decisions of your life. It’s normal to be excited and fall in love with a high rise condo. However, try to keep a level head. Falling in love with a home can cloud your judgement or end in disappointment. This can happen if unforeseen issues are exposed in the inspection or if someone puts in an offer before you.
If you don’t find a home… don’t get discouraged. Searching for Boston real estate for sale can be a lengthy process. But it will be worth while when you find the perfect home.
As much as you are excited to purchase a Boston condo, it’s best to keep this to yourself. Sometimes home buyers write letters to the home owners. This is fine, but remember that the current owner will have an emotional attachment to the property.
It’s best not to make them feel like you’re going to come in and completely change the place. If you write a letter or make conversation with the owners, just keep the conversation light.
When applying for a mortgage, every financial decision plays a part. It is recommended that you do not make any large purchases like furniture or a car prior to applying. This is because banks want to see that you have a smooth financial history.
Going further with your financial history, cash withdraws and deposits also play a part in your mortgage approval rate. Large quantities of cash going in or out of your accounts signals a warning sign to the bank that you may not have stability. Avoid any sporadic large withdraws or deposits of cash before purchasing a downtown Boston condo.
The amount you are approved for on your mortgage comes down to your capital. How much money do you have at your disposal? Applying for extra credit increases your debt. This extra debt decreases the amount you will be approved for on a mortgage on a high rise condo.
7) DON’T CO-SIGN A LOAN.
While co-signing a loan may not technically be yours – it will still equally count towards your overall debt. Co-signing a loan can have a negative impact on not only the amount of your mortgage, but approval rate in general. Avoid co-signing any loans.
As financing is again a loan, it is therefore debt. Stay away from financing a car or furniture it will lower your credit score.
9) DON’T SWITCH OR LEAVE YOUR JOB.
Financial stability is one of the most important factors considered when a bank is approving your mortgage. The key to financial stability is having a dependable income. If you switch or leave your job, often or before applying for a mortgage, this may signal red flags.
If you are thinking about a move, hang tight with your job until after your mortgage is approved.
There are many important things to consider when purchasing a Beacon Hill home. It is one of the biggest decisions of your life.
In order to ensure that you get the downtown condo you want, when you want it, you need to understand and follow the above tips. Doing so will increase your chances of finding that perfect home and getting a mortgage. Remember that financials are very important when it comes time to apply for a mortgage. Make that your priority.