It’s easy to get caught up in the moment when you make the decision to purchase a house. You need to find a trustworthy real estate broker who won’t take advantage of your “buyers high” and sell you something you can’t afford. Don’t rush into anything you’ll regret later and don’t let an aggressive brokers smooth talk you either. “Yes, I can see this is the kitchen. What are the comps in the area?” Remember, you are the buyer. You’re the one with the power. Also keep in mind when shopping for a home, the seller will have the home looking it’s best for prospective buyers often covering up problem areas. When you go see a house you’re interested in, take your time and look hard. Don’t be afraid to ask questions and have any offer you made contingent upon an engineer’s inspection report.
1) Not Getting Pre-approved for a Loan
Walking into an open house with a pre-approved home loan (not pre-qualified) can give you more room for bargaining when you find the house you want. However, many people (especially first-time home buyers) make the mistake of buying beyond their budget, which only leads to big problems. No matter how you justify it to yourself, stick to what you can afford. To get pre-approval the bank will look at employment, financial accounts, income to debt ratio and yes, your credit score. An inquiry at this level can affect your credit, so research lenders and be sure of who you want to go with to avoid multiple inquiries. Use a credit monitoring service and stay on top of it. Check your own credit report for errors. Don’t spend beyond your means. Just because it’s your first house, doesn’t mean it has to be your last.