An Appraisal of Frequent Pre-Purchase Mistakes
You’ve probably heard the pre-or-post-purchase moans. “Awww the roof fell in on my loan.” “Awww the roof plain fell in.” “Gee, if only I had known not to buy that DeLorean before the closing. We wouldn’t be living in a tent right now.” “Jeez, I had no clue my credit score was 20.”
If you’re new at the home purchase game, here’s how to prevent taking a bath in a tub that isn’t even yours yet. These are common pitfalls and bungles to avoid when you’re thinking of buying that bungalow.
Once again, PahRoo Real Estate Appraisal & Consultancy must give praise to two sources of information in addition to our own expertise: U.S. News & World Report, online from December 15, 2011 and Sterns Lending who lent their expertise which we happily purloined, oops borrowed.
Thunderous Blunder 1: You Don’t Check Your Credit RatingBefore you even consider a purchase make sure you’re informed about your credit score. The better your credit report and higher your credit score, the more likely you are to be preapproved for a mortgage at a low interest rate. If your score is 700 or more, you’re in good shape. If it’s near Absolute Zero you could be fffrozen out by a lender.
How do you get a truly free report? The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months. To get yours visit annualcreditreport.com or call 1-877-322-8228.
Bad Idea 2: Don’t Incur Any Mega ChargesDon’t buy a huge car, or pay for a trip to Vegas and put $5,000 of your losing’s at Blackjack on your credit card before the house has closed. This could affect your credit worthiness as perceived by scrutinizing lenders who also consider your cash position, which is hopefully more than what’s under your mattress.
Oops Number 3: You Don’t Know the Home’s True Value You don’t even want to think about paying $5,000, $10,000 or more in excess of the property’s value. To bid properly and intelligently, you’ve got to have the valuation of the home determined. To protect your financial wellbeing and your investments, it’s important that you engage a valuation professional. Whether it is personal property, real estate or a business, a professional appraiser can provide an independent and impartial appraisal of the property under consideration. Personally, we’re partial to PahRoo Real Estate Appraisal & Consultancy and we’d be delighted and honored to serve your appraisal needs.
Final Pre-Home Moan Generator: Not Getting Pre-Approved "First-time buyers should get an approval from their lender before looking at homes," counsels Merry Juell, 20-year licensed Realtor with @Properties in Winnetka, Illinois. "This can save you time, headaches and heartaches by informing you about what you can afford instead of reaching for something out of your price range. And it will put you in a better position over other bidders with no preapproval.”
“Don’t start a new job, don’t switch banks, and don’t disregard your lender’s requirements” are also on the “Don’t Do” list, but (moan), we’ve run out of…
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