5 Common Mistakes Home Buyers Make

Don't Make These Mistakes When Buying a Home

Buyers typically want to put their best foot forward when buying a home but wind up making some mistakes. Good intentions can often lead to bad consequences. Keep these points in mind when getting ready to buy a home:

1. Trying to Clean Up Your Credit Score.   You definitely want to have a good debt to income ratio. However, don't use up all your cash when paying down debts. You'll need money for an earnest deposit, home inspection and closing costs. Consult a lender to come up with a good strategy before investing a lot of money. If you don't know a good lender we know several who are great at helping people repair their credit and plan ahead.
2. Not Thinking Far Enough Ahead.   You truly make your money when you buy the house. You can't change location, which can be a big factor later when selling. We can help you get an idea of which subdivisions sell well. Don't forget to factor in if you want kids later. How long do you plan on staying in the home? You could get a different mortgage that can help maximize your payments -- and profits -- later.
3. Not Getting Prequalified.   We've talked before about being prequalified. You need to know ahead of time how much house you can afford, what the interest and fees will be and what mortgage options you have available.
4. Taking the good faith estimate as gospel.   The estimates can vary from lender to lender. Your closing costs can be anywhere from 3% to 5% of the loan. We can negotiate with the sellers to help pay some of them and will fill out an estimated cost sheet when you submit an offer.
5. Failing to budget for home expenses.   Things will go wrong when you own a house. There is quarterly maintenance you need to do on any home. These are things you weren't responsible for as tenants but now that you're king of the castle you get to pay the bills.

Buying a home is serious business. We're professionals who work with buyers every day to repair credit, plan for the purchase, negotiate the contract and close the deal. We have a team of lenders, title personnel, and home warranty companies that can make your new home purchase a much easier experience.