With today’s rising interest rates and high home prices, buying a home takes some planning and forethought. Mistakes can be costly, such as getting a mortgage that’s higher than you can afford or getting stuck in a neighborhood or house you don’t actually like. Here are eight of the most common home buyer mistakes and how to steer clear so you make a satisfying purchase.

Mistake #1 – Shopping Before Getting Mortgage Approval

It can be exciting to get right out and start looking at houses when you think you’re ready to buy but talking to a mortgage lender is the smartest first step. You can get pre-approved for a mortgage with just a few pieces of information, giving you the backing of a lender when you start your home search. The pre-approval letter will also let you know how much money you qualify for and can give you a good ballpark of the maximum home price you can afford. Getting pre-approved also lets you ask the lender any questions you have about the mortgage finance process before it starts.

Mistake #2 – Failing to Check Your Credit Score

It is a good idea to know what your credit rating is before you even start the homebuying process. You can check it for free from any of the three major credit-reporting agencies. Your score will determine, in large part, whether you are approved for a home loan and what type of interest rate you get. If your score is currently on the low side, you may consider waiting to buy until you can bring it up significantly.

Mistake #3 – Not Having a Clear Vision of Your Home Preferences

It can be hard to know what you want in a home if you’ve never owned before. However, identifying your “must-haves” will lead to greater satisfaction. No home is perfect, but if most of your priorities are met, you can make improvements later. Make sure you and your spouse or co-buyer agree on what’s essential in a home.

Mistake #4 – Failing to Research the Neighborhood

The right house is not solely about the floor plan and the price tag. If you plan to stay for any length of time, the house needs to be located in an area that fits your lifestyle. Make sure you drive through the neighborhood during the day and at night to get a feel for the vibe. You can check online databases to see the crime statistics in the area as well as the school ratings. The location should also match your preferences for how close you want to be to shopping and entertainment.

Mistake #5 – Buying More House Than You Can Afford

Buying at the top of your mortgage lending limit is not usually the best move. Even if you can afford your monthly mortgage principal and interest. There will be homeowners’ insurance, property taxes, and home repairs and maintenance to factor into your budget. After you factor in all these costs, it is smart to keep them to no more than 28% of your monthly income.

Mistake #6 – Forgoing a Home Inspection

Once you’ve found the right house, it can be tempting to speed the process up by waiving the home inspections.

• Skipping a home inspection is a big mistake.
• It can reveal major issues that need fixing before you buy.
• At the very least, it gives you a clear view of the home’s systems, appliances, and structure.

Mistake #7 – Making Big Purchases During the Mortgage Approval Process

Once the finish line is in sight, you are going to want to go out and start buying the right furniture and fixtures for your new place. Even in these areas, buyers sometimes need jumbo loans when a decent-sized home costs more than the conventional limit. Hold off on buying appliances, furniture, or any other major items until the loan closes.

Home Buyer Mistakes

If you’re in the market for a new home, contact us today.

We’d love to help you get pre-approved for your mortgage so you can buy your next home.

These materials are not from HUD or FHA and were not approved by HUD or any government agency.