Top 10 Mistakes Buyers Make

#1 Making major purchases. Your finances will be scrutinized before a bank will approve a home loan application. Even if you have perfect credit – or you’ve recently come into some money – extravagant purchases can jeopardize your ability to secure a mortgage. 

#2 Changing jobs. While you don’t always have control over your employment status, a steady job will demonstrate financial stability and capability. If possible, wait to change jobs until after your home loan is approved, and never quit while trying to get a loan.

#3 Overextending. Creative financing and adjustable rates might let you buy your dream home, but a market turn could leave you owing more on your house than it’s worth or with sky-high payments you can’t make. To keep your home, buy what you can afford.

#4 Taking a shortsighted view. It’s likely that you’ll live in your new home for at least five years, so before you buy, consider your future. Make sure your house will accommodate your growing (or shrinking) family and suit your needs down the road.

#5 Getting too emotional. Buying a new home is ultimately a financial transaction, and keeping your emotions in check is crucial. Hold your temper – and your tears – when dealing with brokers, sellers, and banks, or risk ruining your deal.

#6 Overlooking the details. Even the smallest mistake or omission can nullify a contract or delay your financing for months. Submit any necessary paperwork as soon as possible and follow up to ensure your documents have been completed satisfactorily.

#8 Making a verbal agreement. That casual conversation you had with the seller isn’t binding, so make sure you get everything in writing – with signatures from both you and the seller included.

#7 Skipping inspections. It’s imperative that you have an inspection performed before you buy a house.If you submit an offer, include a clause that it’s contingent upon a clean inspection.

#9 Ignoring the fine print. Review any restrictions placed on the deed, the regulations of the home owners association, and any rules that limit or govern your property. You don’t want any expected surprises about your freedoms – or your obligations.

#10 Skipping the final walk-through. Before you finalize your purchase on closing day, take one last walk through the house after it’s been vacated. You may discover damages that were previously hidden, or the seller may have caused new damages while moving out.