Before you begin what should be the fun process of buying a home, consider a couple finer points to help save you money, both up front and down the road. One issue relates to your credit score and its impact on your financing, and the other relates to the condition of your home and the cost of repairs.
First, know your credit score in advance of house hunting, and take immediate steps to improve it if it’s less than stellar. During your loan application is not the time to find any surprises.
Correct any errors on your credit report, pay down some revolving debt, and don’t make any other major purchases — like buying a car or truck — until your loan paperwork is complete and you’ve already closed on your home. This is important because borrowers with lower scores pay higher fees and interest rates, which can total tens of thousands of dollars over the life of the loan.
Once you’re in the position of having made an offer to purchase, do no skimp on the inspections. No matter how strapped for cash you think you are, the cost of inspections is a drop in the bucket compared to what unexpected plumbing, electrical, and structural repairs will cost you in the future. Your agent will go over a list of available inspections and advise you about the ones most appropriate for the home you are purchasing.
It’s also a good idea to make sure you have a home warranty to cover repairs of mechanical systems that are not a problem during the inspections, but come along after you’ve moved into your home. The home warranty is like a safety net to cover your home during your first year of home ownership.
Contact the Kathy Henne Team RE/MAX FINEST by calling (937) 778-3961.
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