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4 Common Obstacles to Buying a Home
(and How to Prepare for Them)
Buying a home is usually more challenging than people expect. Even when you’re working with an experienced real estate agent like Jeffrey Nitz, you are sure to be met with obstacles along the way. The key is to prepare for these issues so that you can avoid them or at least navigate them as they arise. Below are four common obstacles in the home buying process along with tips and resources for handling them.
1. Selling Your Former Home
If you’re already a homeowner, then you likely need to sell your old home before getting too deep into your home search.
● Make the house stand out against competitors by boosting curb appeal and making improvements to the interior.
● Make any repairs necessary for the house to be move-in ready.
● Work with your real estate agent to set the right asking price, and if necessary, to negotiate effectively.
2. Finding Your New Home
House hunting is the fun part for most people, but the process can be rife with challenges.
● Use real estate and home search websites to narrow your options.
● When choosing a neighborhood, consider safety and proximity to everyday needs like work, school, and family.
● Carefully review your budget to determine how much you can spend on a house.
3. Saving Up for a Down Payment
Unless you are a veteran, you will probably be required to put money down on the purchase of a home, which can range from 3% to 15% of the sale price.
● Estimate how much your new house will cost and how much you are willing to borrow to get an idea of how much you need to save.
● Explore your possibilities with side work to boost your income.
● Pay off as much credit card debt as you can before saving for a down payment.
4. Getting Approved for a Mortgage
There are many boxes to check when it comes to obtaining a mortgage.
● Gain an understanding of your total monthly income, total monthly debt payments, and long-term employment situation.
● Along with paying off credit card debt, look into other debt relief options that can help you improve your credit score.
● Prepare any that lenders will need (e.g., proof of income, tax returns, credit history, etc.) so that you can quickly provide them when asked.
The home buying process is rarely straightforward and easy. You can expect to encounter a number of issues as you sell your home, find a new home, save up for a down payment, and seek approval for a mortgage. But if you prepare for the obstacles, you will be less surprised and better able to deal with them.