Knowing What You Shouldn’t Do
Owning a home is one of the most effective wealth-building tools available to the everyday consumer.
It’s no wonder that first-time home buyers are out in force. One-in-three home sales today are to first timers, and many more are queuing up to be homeowners in 2017.
But when you’ve never done something before, it’s difficult to know what you shouldn’t do. Sometimes, new buyers make mistakes.
Fortunately, the mistakes, even if made, don’t mean disaster. But if you can avoid them, you should.
Following are five common mistakes for first-time buyers — and experienced ones — to skip when you buy a home.
1. Jumping The Gun
Don’t go shopping for property before getting pre-approved for your mortgage. Mortgage pre-approval offers so many advantages. It’s fast, and can save you headache down the road.
- Sellers and agents won’t take your offer seriously without a pre-approval letter
- Pre-approval helps you determine what you can afford
- Pre-approved mortgages close faster
- Pre-approval minimizes financing problems during escrow
Note that mortgage pre-qualification does not usually go far enough. Until you complete an application package and get pre-approval from a mortgage underwriter, you’re not fully-prepared to close on a home purchase. This could result in embarrassment, wasted time, and lost money.