BUYER MISTAKES

What To Avoid When Buying Your Home

Getting Too Emotional

This is a super common dilemma for home shoppers. It can be difficult to balance the excitement of a new home with the logic of staying on budget. Think of your home shopping from the perspective of a businessowner or investor rather than the person who will actually live there. Walk through the house as if you are not the buyer, so that you’ll be able to think financially wisely. However important it is to value sentimental or emotional aspects of the home, it can be an added stressor in the process and negatively impact your judgement.

SHOPPING BEFORE GETTING PRE-APPROVED

Home shopping is fun, while speaking with the bank can be stressful.. Many first time home buyers visit and tour properties before finding out their borrowing budget. Too often, these buyers find out they are in the wrong price range (either too high or too low). Speak with a mortgage lending professional about getting pre-qualified or pre approved before you begin your home search. This process reviews your income and enforces your offer with proof of funding.

Emptying Your Savings

Most people are not buying new construction, so their homes will inevitably need repairs and upkeep. This can include things such as a new water heater, roof repairs, or more. Have enough money for your down payment and closing costs, but save back enough for potential repairs. You can always ask your lender for approximate closing costs, and its easy to approximate moving expenses online.

Choosing The Wrong Lender

Remember that you have a bargaining chip and it pays to compare offers, even from mortgage lenders. Interest rates vary from lender to lender, and so do closing fees and discount credits. According to the Consumer Financial Protection Bueau, almost 60% of borrowers take the first loan they are offered. To avoid this, apply with multiple mortgage lenders. A borrower can save up to $500 in the first year by comparing lenders. All mortgage applications made within a 45 day window only count as one inquiry on your credit.