5 Common Mistakes a Buyer Should Avoid

A single mistake can cost home buyers headaches, valuable time and even money.  StopRenting has compiled this list to help you avoid some of the most common and costly mistakes made.

1.  Changes made on any information reported on your loan application

When you were approved for a loan, it was based on your most recent financial information.  If anything were to change after approval, it would more than likely change your approval status.  For example, if you decided to buy a car or apply for a credit card, you will need to notify your loan officer of the updated information that needs to be reported on your loan application.  If not, when the lender re-pulls your credit before closing, they will more than likely pull your loan back to the underwriting department again based on the new information.  StopRenting advises that you do not make any major purchases or financial decisions (including job changes) without consulting your loan officer first. 

2.  Buying more home than you can afford.

The current housing crisis is a direct reflection of too many people buying a home they could not afford.  This mistake is often made by irresponsible buyers that have bought into trendy loan programs or have not accepted what their true affordability is.  A simple way to avoid this mistake is to ensure your monthly income will cover your new monthly mortgage bill, along with your other bills.  Do not be afraid to ask the seller for a 12 month record of their utility bills so that you will be fully informed of all your new expenses in addition to the mortgage.

3.  Waiving a home inspection.

A home inspection should never be waived, especially in a buyer’s market (see Choosing the Right Home Inspector for more information).  If the home inspector finds anything that you are not happy with, you can use the results to back out of the contract with no ramifications or loss of deposit.

4.  Not getting pre-approved for a loan before shopping for homes

It would be a great loss of your valuable time to view homes that are well out of your price range.  To circumvent this, StopRenting strongly advises that buyers get pre-approved from their lender prior to shopping and viewing potential homes.

5.  Using the listing agent of your desired home instead of your own agent.

If an agent represents both the seller and the buyer, it can easily become unclear who the agent is looking out for.  This conflict of interest can cause added frustration to an already complicated process.  In order to keep your interests in safe hands, StopRenting recommends finding your own agent that is not already involved in the transaction.