Mistakes to avoid when buying a home

When shopping for your new home there are many things that you can do wrong. Some of these mistakes can cost you the home you wanted to buy your money or both. Some of the more common mistakes are but not limited to the following.


Not getting your interest rate lock in writing. When your mortgage broker locks your interest rate he/she should supply you with a letter that states your interest rate and how long it is locked for. Do not take the word of your mortgage broker that your rate has been locked. Always ask for a rate lock letter

When buying a home make sure that you do not buy too expensive of a home. Even though you may qualify for a large mortgage this does not mean you need to buy a home at the maximum amount you are approved for. Along with a bigger home, come larger utiltiy bills, larger maintenance bills and more time required for the upkeep of your home and yard. Many people like to buy homes above their means and then end up needing to downsize later.

Many people shop for a home prior to shopping for a mortgage. Often times they will fall in love with a house they ultimatly can't afford. By speaking to a mortgage professional first you will get a concise window of what price you can realistically afford. Getting pre-approved is the best way to let Realtors and sellers know you are serious about your purchase. Generally, they will then take your offers much more seriously.

Rushing into a home can be a big problem. Get prequalified and don't shoot for the max, take your time and look at many houses, as you will probably be in it for a long time to come!

Before even looking at homes, make a list of things that you MUST have in your home, be it size, rooms, location, amenities, etc. Then, use that checklist when looking at homes. Be patient and don't make compromises you may regret later.

If you find a home you like, make sure you take a look at it more than once and at different times if possible. Try and get a feel for the day to day things you don't always think about. There might not be any traffic on a Sunday afternoon, but morning rush traffic might be horrible, or the bus stop might not be in a convenient location.

You should always get a second opinion on the house condition from a licensed and certified property inspector who can tell you what is wrong with the house or what items will need to be repaired so you can negotiate for repair costs from the sellers.

» DISCLAIMER: The information contained in this article on 'Mistakes to avoid when buying a home' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.