Posted on November 13, 2015
4 Mistakes That You Are Making Before Buying Two Family Homes For Sale In MA
Homeownership is a journey and not a destination as most people tend to believe. Most people think about it as a final place to get to and thus overlook certain key steps along the way. When two family homes for sale in MA are in the mix, it is important that you know the potential mistakes you could be making and how you should fix them. Below are the four mistakes that you should be on the lookout for.
1. Not checking and verifying their credit score
When was the last time you checked your credit score? If you are contemplating buying two family homes for sale in MA with FHA loan financing, your credit score will be brought to question. That is why should get your credit score checked. If you are doing all the right things to keep it healthy but you keep ending up in the red zone, it is time to check what those things keeping you in the red zone are. It could that some loans you have settled have come back to haunt you and so on. Therefore, ensure that you check out the credit score and keep it clean.
2. Not knowing what they can afford
New home owners have a haphazard approach when it comes to shopping for homes. They have no figure in mind because all they want is a home to call their own. You should avoid this especially when you are looking for homes for sale in MA because you could end up buying a house you cannot afford. People who have settled for homes they couldn’t afford will tell you that the biggest mistake they made was rushing into it without giving the process serious consideration.
3. Not saving for the down payment of the house and other transactions
If you are intending to buy two family homes for sale in MA, you need to ensure that you pay 3-20 percent of the total cost of the house from your own pocket. Most prospective homeowners think that the FHA loan covers the total cost of the transactions of the house. This is a grave misconception that costs most people the shirts of their back because they are financing the entire cost of the house from debt. The 3-20 percent is there to offset the debt you could be incurring in purchasing the house.
4. Thinking that their bank account doesn’t matter while they are looking for a loan
It is often said that banks don’t lend money to people who need, they lend it to people who have it. It is unfortunate that things work this way but if you want to buy one of the two family homes for sale in MA, you have to get with the program and do what is required of you_ that is save. Ensure that you have 5 months-worth of mortgage payment in your bank account. Set aside a portion of money so that you can inspire confidence in the lending institution you intend to use.