So, you think you’re ready to buy a home! You have a steady job, you have a good amount saved for a down payment, and your credit score is good. You might even be ready to apply for mortgage pre-approval or to start looking for a Realtor. However, even if you’re very prepared, there are still some dire mistakes that may sink your prospects. If you want to be sure to be approved for a mortgage, check out this post by Sarah D’Hondt at the Lighter Side of Real Estate Blog for things to avoid:

-Not STAYING pre-approved- do not open any new lines of credit, make any late payments, or use a credit card.

-Dilly-Dallying- if you see a house you love, make an offer!

-Too low an offer

-Asking too much from the seller and nit-picking the inspection report.

Photo Credit: Frank Hebbert

In many cities, rent expenses are growing faster than actual home prices. It’s becoming cheaper to own than to rent, and people are realizing it. However, to buy a home, you do need to have some money to your name for a down payment, which is why less people are switching over. But, there are ways to buy a home with a small down payment (or even none at all!) For the pros and cons of buying a home with a smaller down payment, check out this post by Kyle Hiscock at the Rochester Real Estate Blog:

Pros:

-It lets you buy a home when you have good credit/job history, but no saved money.

-It won’t drain your savings account

Cons:

-Lack of immediate equity- you’ll need to stay in that home for more than 5 years before moving.

-Mortgage insurance required

-Higher interest rates

Photo Credit: Tax Rebates