Anytime a first time home buyer, or any home buyer, makes an offer on a house that’s for sale and that offer is accepted, there is always a closing process. The closing process can be fun and exciting, or it can be stressful and not overly successful. Either way, the closing is the last step for home buyers before they have a house to call home.
The worst thing a first-time home buyer can do is allow their excitement for homeownership to lead to mistakes during the closing process. For this, and many other reasons, it’s valuable to find a realtor to work with throughout your home buying experience.
If you are working with an experienced, dedicated real estate agent, that realtor is there to walk you successfully through home closing good practices, as well as those things you need to avoid. Nothing is final until the closing papers are signed. As a first time home buyer, many do not realize exactly what goes into buying a home and therefore are unaware of what practices to avoid during the home buying process. We’ve collected some helpful tips for new home buyers here:
Read the Contract in Full Before Signing
The most made first time home buyer mistake is not reading the contract in full and understanding it before you sign it. Any home buyer contract most likely will be reviewed by your buyer’s agent and title attorney, but as the actual home buyer, you are ultimately responsible for accepting the terms in that contract. The last thing any new home buyer needs is to find out details of their home sale AFTER the closing. A good home buyer will be sure to be aware of any hidden fees or stipulations related to their home closing details. There should not be any hidden surprises on the day of your closing. Buying a home is a huge investment— the smartest thing you can do as a new home buyer is make sure your have all your information correct and understand all the details of your home sale.
Be Ready with Down Payment Funds
This absolutely means you should not spend your down payment money on anything other than the down payment. This is something that happens often with new home buyers. For the majority of home sales, a down payment is necessary if you want to close on your home. You will need to calculate the down payment money well before you sit down at the closing table. A good lender will help a new home buyer understand the importance of allocating and saving down payment funds from the beginning.
Don’t Skip the Home Inspection
A home inspection is the process all homeowners should agree to. The inspection is necessary to be sure home buyers are making a good investment. A home inspection will point out any issues with the property and further allow prospective home buyers a way to negotiate repairs, closing costs, or repair credits based on the home inspection results.
Sometimes new home buyers will view the home inspection as a waste of time, energy, and money. However, the truth is this could not be further from the truth. Skipping the home inspection is a big mistake a home inspection alerts potential home buyers to any faults in the home such as mold, a bad roof, mechanical issues, or other pricey issues that no new homeowner wants to deal with after the closing process.
Stop Big Spending Until After the Closing
Once you’ve decided to become a homeowner, you really need to stop making large purchases until after the closing of said property. This is another common mistake new home buyers makes that could stop you from getting your new home. Spending large amounts of money during the home buying process can cause even more issues with your lender or title attorney. So, if you’re planning to purchase a home, do not go buy a car, all new furniture…etc. This will very likely derail the entire process. Likewise, you also want to avoid running your credit for any reason.
Keep Your Finances Traceable
Just like any financial organization, all funds must be sourced. A very large issue that could certainly derail your home ownership dreams is depositing unsourced cash into your accounts. When you work with a mortgage lender, you must disclose pertinent information such as income, bank statements, and credit history. This helps in determining your loan amount so that you can purchase your home. However, if you were to suddenly deposit unsourced cash, this will put a pause on the entire process. Depositing money into your account from an unspecified source will absolutely raise red flags with your lender, which might mean the loss of your loan.
Meet Noonan Lombardi Realtors
Noonan Lombardi Realtors operates one of the most successful real estate teams for home sales, property management and rentals in Rhode Island, Connecticut, and Massachusetts. This team uses top-of-line resources to make all your property dreams come true. The Noonan Lombardi Realtors team of professional and experienced realtors are transforming the way consumers make home-related decisions and connect with professionals. Based on this team’s wealth of experience in the real estate markets across Rhode Island, Massachusetts, and Connecticut, you will be pleasantly pleased with the real estate services this team provides.
Noonan Lombardi Realtors was voted #1 Real Estate Company by The Providence Journal’s Readers’ Choice Awards 2021.