Avoid These Common Missteps After Mortgage Approval: Essential Advice for Philly’s New Homeowners
When you are a first-time home buyer in Philadelphia, you must prepare for the aftermath of receiving mortgage approval. Philly homeowners often make mistakes after they get the mortgage approval, so you may need some essential advice regarding the property. From managing your finances to navigating Philadelphia’s unique real estate quirks, here’s some essential advice for avoiding common missteps and making your transition to homeownership as smooth as possible.
1. Hold Off on Big Purchases and New Credit
One of the best mortgage approval advice you may receive is to hold off on big purchases. Having the opportunity to decorate your home beautifully wakens an impulse to renovate your new home and purchase new home decor and furniture to create an aesthetically pleasing space for yourself. However, you must remember that lenders monitor your credit, so opening new lines of credit may damage your history and impact your debt-to-income ratio. We suggest you keep your spending steady until you’ve officially closed on the home.
2. Avoid Job Changes (If Possible)
Suddenly changing occupation is one of the biggest financial mistakes Philadelphia first-time homebuyers make. Philly is a big city with various industries and trying your fate in a new company may be tempting, but remember that changing your job may raise red flags for lenders. Even if your job is in the same field, lenders may find a change alarming. Therefore, if it’s possible, avoid job changes to showcase your stability in employment.
3. Stay on Top of Homeowner’s Insurance
As you close, you’ll want homeowner’s insurance, a must for any new buyer. In Philadelphia, the neighborhood where your property is located—whether a cute little townhouse in Fishtown, a suburban house in Chestnut Hill, or a classical home in Center City—can dictate your requirements and premiums for insurance. Older Philadelphia homes also have the potential to have higher premiums because of age-related maintenance concerns. Therefore, look around, and compare rates, you will do well as long as you have sufficient coverage for your property and what it specifically needs.
4. Check for Philadelphia-Specific Fees and Regulations
Every region, including Philadelphia, has its specific regulations and fees that sometimes surprise first-time Philly homeowners. Therefore, checking Philadelphia-specific fees and regulations will be a smart decision. The city imposes a transfer tax on property sales, which amounts to around 4.278%—one of the highest in the state. This is a tax that the seller and the buyer usually split, but it’s best to make sure and check with your Philadelphia real estate agent. Moreover, certain building regulations apply if you decide to purchase a property in one of Philly’s historic districts.
5. Keep Communication Open with Your Lender
One of the home loan mistakes to avoid is having limited communication with the lender. You need to stay transparent with the lender before and during the closing process, so you have disclosed every minor and major change. If there’s an unexpected expense or you need to make some last-minute changes to the plan, it pays to inform your lender as soon as you can so delays can be avoided. In Philly real estate, it’s a competitive market, but having clear communication makes everything go as smoothly as possible, especially in the final steps.
6. Plan Your Move with Philadelphia Traffic in Mind
Traffic and parking availability in big cities such as Philadelphia are often unpredictable. Many of the areas in Philly have narrow streets and limited parking, so consider these factors before making the move. Move during off-peak hours or if that’s not possible check with local officials about getting a temporary parking permit for moving trucks in busy neighborhoods. Small logistical details like this strip away some of the stress and uncertainty about an already stressful and uncertain time.
7. Prepare for Immediate Expenses
In a city like Philadelphia, when you close on the house, as a new homeowner, you may underestimate the costs that follow. Philly is known for its charming but sometimes quirky row homes and historic properties, which can come with their own maintenance needs. You should budget for any immediate repairs or improvements you may need – anything from checking the heating system in the winter, checking for drafts in windows, to making sure your plumbing works okay.
Final Thoughts
Becoming a homeowner in Philadelphia is a fantastic achievement, but it requires careful steps after mortgage approval to avoid hiccups. By holding off on big purchases, sticking to your financial plan, and navigating local requirements, you’ll be well on your way to a successful closing and a smooth transition to life as a new homeowner in Philly. With a bit of foresight, you can avoid common pitfalls and focus on enjoying your new home in one of America’s most historic and vibrant cities.
