Owning a home is an exciting new adventure! As you delve into the buying process there are a lot of decisions to be made. How can you make a smooth transition? Start by avoiding these 5 common mistakes:
• Don’t Apply for a New Credit Card…Yet
Did you know that every time you apply for a credit card, it is reflected on your credit score? Yes, this can be devastating when you are trying to buy a new house. Unfortunately, that new credit card may have to wait.
•Don’t Close Your Existing Credit Accounts
As you consider buying a house, you may think closing unused credit cards will improve your credit score. Unfortunately, this tactic doesn’t work. In fact, it might hurt your utilization rate and length of credit history, which can lower your overall FICO score.
•Don’t Be Too Quick To Spend Your Savings
You will need cash for a down payment, closing costs, and other hidden expenses of homeownership. Not to mention that having disposable money is always smart in case of an emergency.
•Don’t Shop for Furniture… Just Yet
Visualizing how your new room, kitchen and living room will look is one of the most exciting parts of buying a new house, particularly if you love interior design. Nevertheless, the décor will have to wait until you get approved for that new home and you are able to cover all the expenses.
•Don’t Forget About Your Realtor
Remember that your counselor/guru in the home-owning arena is your Realtor. For that reason, he or she will be able to guide you through your journey of buying a new home, while reminding you of those common do’s and don’ts.