Avoid These 9 Homebuying Mistakes

Home Buying in Naperville

By Kurt Clements

The real estate market in the Aurora area is HOT, so you need to avoid these 9 home buying mistakes.  The last thing in the world you would ever want is to spend a bunch of time searching for a home, finding that perfect place, and then not being approved for your mortgage. There are also many common mistakes homebuyers make that could make the process much more painful than it has to be.

We’re writing this article because we know how stressful it can be to buy a house. To make your process easier, we are going to cover the 9 things you shouldn’t do when purchasing a home.

1) Don’t overestimate your budget.

Ever heard the expression “House Poor“? Many homebuyers overestimate what they can actually afford and end up with very little wiggle room financially. Before jumping into buying, make sure you have a realistic idea of the yearly costs involved with owning a home.

Remember, there is your mortgage, property taxes, utilities, insurance, and repairs. All of this before you even think about making upgrades. Factor in all the costs and leave yourself some room.

2) Don’t let your emotions run wild.

Buying a home is one of the most significant decisions of your life. It’s normal to be excited and fall in love with a home. However, try to keep a level head. Falling in love with a home can cloud your judgment or end in disappointment. This can happen if unforeseen issues are exposed in the inspection or if someone puts in an offer before you.

If you don’t find a home…  don’t get discouraged. Home searching can be a lengthy process. It will be worth it when you see the winner.

3) Don’t talk to sellers about plans for the house.

As much as you are excited to get in and put your personal touch on the home, it’s best to keep this to yourself. Sometimes home buyers meet and get to know the homeowners. This is fine, but remember that the current owner will have an emotional attachment to the property.

Learn About Additional Mistakes First Time Homebuyers Make Here!

It’s best not to make them feel like you’re going to come in and completely change the place. If you make a conversation with the owners, just keep the conversation light.

4) Don’t make any large purchases.

When applying for a mortgage, every financial transaction plays a part. It is recommended that you do not make any large purchases like furniture or a car before applying. This is because banks want to see that you have a smooth financial history.

5) Don’t withdraw or deposit a lot of cash.

Going further with your financial history, cash withdraws, and deposits also play a part in your mortgage approval rate. Large quantities of money going in or out of your accounts signal a warning sign that you do not have stability. Avoid any sporadic withdraws or deposits of large sums of money.

6) Don’t apply for more credit.

The amount you are approved for on your mortgage comes down to your capital. How much money do you have at your disposal? Applying for extra credit increases your debt. This additional debt decreases the amount you will be approved for on a mortgage.

Check out more FHA loan Guidelines Here!

7) Don’t co-sign a loan.

While a loan may not technically be yours – it will still equally count towards your overall debt. Co-signing a loan can have an impact on not only the amount of your mortgage but the approval rate in general. Avoid co-signing any loans until you have purchased your home.

8) Don’t finance a car or furniture.

As financing is again a loan, it is, therefore, debt. Stay away from financing a car or furniture for the above mortgage approval reasons.

9) Don’t switch or leave your job.

Financial stability is one of the most important factors considered when a bank is approving your mortgage. The key to financial stability is having a dependable income. If you switch or leave your job, often or before applying for a mortgage, this may signal red flags.

If you are thinking about a move, hang tight with your job until after your mortgage is approved.

In Conclusion

There are many important things to consider when purchasing a home. It is one of the most significant decisions of your life.

To ensure that you get the house you want, when you want it, you need to understand and follow those above tips. Doing so will increase your chances of finding that perfect home and getting it. Remember that financials are essential when it comes time to apply for a mortgage. Make that your priority.

Also, keep in mind the emotional aspects of purchasing a home and try to stay calm. It can be a draining process, but it will be worth it when you get the keys to the castle!

Hey, are you looking for help becoming a homeowner?  I would love to help you achieve your homeownership dream.  Email me, [email protected], and we can help you make it happen.

 

About the Author
Kurt has developed his unique Three Pillar System to sell your home for the highest possible price in the shortest amount of time. His experience and research have indicated that all three pillars are vital to achieving your desired outcome as quickly as possible. If you would like to learn more about his Three Pillar System, contact Kurt today!