Tips for Buying a Home | Florida Capital Bank

Not checking credit score

Many people assume their credit score is fine because they have not encountered any problems obtaining credit cards or auto loans. But there may be mistakes on your report that can change your credit score and prevent you from qualifying for the best interest rate on your home loan. Be sure you review your credit report well in advance of applying for a home loan. Correcting mistakes on the report takes time. By starting early, you stay in control of your home buying transaction from the start.

Not considering the total household budget

Most people want the best home they can possibly afford. This put many people in a financial bind during the recession. When a two-income household was reduced to only one income, or people’s income did not increase as they expected, they were unable to maintain their household budget and fell behind on home payments. There is more to owning a home than just making the mortgage payment. You must consider property taxes, homeowners’ association dues, utilities, your hobbies, maintenance, and periodic upgrades to style and appliances. You want to comfortably afford your next home; by budgeting accordingly you will be able to get the most enjoyment from living there. Discuss your long-term goals and plans with your loan officer when you get pre-qualified.

Using all savings for the down payment

With a conventional loan, a 20 percent down payment saves you money on your monthly payments by eliminating the need for private mortgage insurance (PMI). It is best to start with some equity in your home. Make sure you have enough savings set aside for unexpected expenses. You do not want to spend the next 30 years living paycheck to paycheck and having to postpone necessary repairs to your home.

Not getting help from the home buying professionals

Predatory lending practices were a significant contributing factor to the housing market collapse. Due to the unethical behavior of some, many people lump all financial institutions into one category: untrustworthy. Make sure to seek the guidance of experts who work in the industry. At Florida Capital Bank, we value family and community. Established in October 2004 and headquartered in Jacksonville, Florida, we are committed to ethical behavior and providing exceptional customer service. We want you to get the best home loan possible, so you can achieve all of your financial goals for the future.