There’s a lot of time, research and even luck that is involved in buying a house. That means there are many chances to take a wrong step and make things more difficult for yourself. Here are some things you should never do when attempting to buy a home. Steer clear of these items and you’ll likely be setting yourself up for success.
Shopping First, Mortgage Second. Before you start shopping for a home, visit with a lending officer first. That way you won’t fall in love with a house that you eventually find you can’t afford. Also, getting prequalified for a mortgage shows sellers that you mean business and will go a long way toward getting those keys.
Talking With Just One Lender. Just like any big purchase, you should shop around for a mortgage. Make sure that you talk with at least three lenders, so you can compare rates, fees and terms. As Money notes, remember to consider your relationship to the bank or credit union itself. If their customer service is poor, move on.
Forgetting to Plan. The time between when you decide to buy a house and when you actually buy it should not go by quickly. Be sure to plan well ahead, so that you can have enough savings, fix items on your credit report and much more.
Depleting Your Savings. Don’t drain all of your savings just to buy a home. Create a budget that sets you up to put as much of a down payment on the house as you can while still leaving some in your savings. If you can’t quite make the 20 percent down payment and need to pay for mortgage insurance, that’s still better than having absolutely nothing in a savings account.
Focusing Only On the House. The house is important, but so is the neighborhood. Remember to consider the house’s location when shopping around, so you don’t end up regretting your purchase.