This article describes five things that are best not to do when buying a home in the United States.
First, don't turn off your credit cards or apply for other loans.
Loan approval in the U.S. is closely tied to personal credit scores, which can affect the interest rate and approval of a home loan.
If we close or open a new credit card before applying for a loan, or apply for another loan, it may affect our credit score, and a one-point difference may directly drop a notch.
The higher the credit score, the lower the interest rate, and the lower the interest rate, which can easily save us thousands or even tens of thousands of dollars in interest after a few years. So be sure to keep your credit score up.
Second, don't just sign anything.
Most real estate transactions in the United States are handled by real estate agents. As a buyer, you must be careful when choosing your own agent and make sure not to sign any agent contract until you are sure of the person.
If the other party is a professional, that's fine. But if the other party is not a serious and responsible agent and you sign the agent contract in a confused manner, then you will have to pay the agent who signed the agreement to buy the house in the future.
In addition, there are more and more different contract documents involved in the home transaction process. It is important that we read the terms and details of the contract carefully before signing.
Once the contract is signed, the contract has legal force. Only after a clear understanding, can we guarantee our interests.
Third, do not apply for a mortgage from only one bank.
To buy a house with a loan in the U.S., you need to go to the bank and apply for a pre-approval letter in advance. With this document, we can have a rough idea of how much we can borrow.
It is also an important document to show the seller our buying power.
Different banks and institutions will have different loan programs and different discounts. Such as interest rates, points for purchase and closing costs.
Therefore, we should shop around to find a more suitable loan instead of talking to only one bank.
Besides, in the United States, there are many legitimate non-bank institutions that can provide home loans in addition to banking institutions.
Fourth, don't look at houses over budget.
Whether it is a loan or full payment, in addition to the house payment, you have to prepare for certain transaction costs. That said, if the total budget is a million dollars, it is best to visit a home around $900,000.
We often encounter buyers who are a bit anxious because their previous offer didn't work out. They will go and look at homes that are out of budget or have random price increases and just want to buy the house quickly.
However, this may cause the loan application to fail. So it is still important to keep a rational understanding of the local market and your own situation. Set a price limit for yourself and calm buyers will eventually buy a house they are satisfied with.
Fifth, don't give up on home inspections or not paying homeowner's insurance.
Everyone who buys a house will have a home inspection and there will be a clause in the contract terms that if the inspection finds problems, the buyer can ask the seller to repair or reduce the price. If the parties cannot reach an agreement, the buyer can withdraw from the contract without liability.
Unless it is a very popular home, the buyer will waive the home inspection as a show of good faith.
In addition to the home inspection, homeowner's insurance is also important. If a home is bought with a loan, the bank will force the borrower to purchase a homeowner's insurance policy that guarantees the home will not be devalued by fire or other accidental damage.
If you buy it with full payment, you can theoretically choose to buy it or not. However, in order to avoid losses caused by home accidents, home buyers are advised to purchase homeowners insurance as a protection.