Things You Shouldn’t Do When Buying a Home

The last thing in the world you would ever want is to spend a bunch of time searching for a home, finding that perfect place and then not being approved for your mortgage. There are also many common mistakes homebuyers make that could make the process much more painful than it has to be.

We’re writing this article because we know how stressful it can be to buy a house. In order to make your process easier, we are going to cover the 9 things you shouldn’t do when buying a home.

1) Don’t overestimate your budget.

       Ever heard the expression “House poor“? Many homebuyers overestimate what they can actually afford and end up with very little wiggle room financially. Before jumping into buying, make sure you have a realistic idea of the yearly costs involved with owning a home.

Remember, there is your mortgage, property taxes, utilities, insurance and repairs. All of this before you even think about making upgrades. Factor in all the costs and leave yourself some room.

 

2) Don’t let your emotions run wild.

Buying a home is one of the biggest decisions of your life. It’s normal to be excited and fall in love with a home. However, try to keep a level head. Falling in love with a home can cloud your judgement or end in disappointment. This can happen if unforeseen issues are exposed in the inspection or if someone puts in an offer before you.

If you don’t find a home… don’t get discouraged. Home searching can be a lengthy process. It will be worth it when you find the winner.

 

3) Don’t talk to sellers about plans for the house.

As much as you are excited to get in and put your personal touch on the home, it’s best to keep this to yourself. Sometimes home buyers meet and get to know the home owners. This is fine, but remember that the current owner will have an emotional attachment to the property.

It’s best not to make them feel like you’re going to come in and completely change the place. If you make conversation with the owners, just keep the conversation light.

 

4) Don’t make any large purchases.

When applying for a mortgage, every financial transaction plays a part. It is recommended that you do not make any large purchases like furniture or a car prior to applying. This is because banks want to see that you have a smooth financial history.

 

 

 

5) Don’t withdraw or deposit a lot of cash.

Going further with your financial history, cash withdraws and deposits also play a part in your mortgage approval rate. Large quantities of cash going in or out of your accounts signals a warning sign that you do not have stability. Avoid any sporadic withdraws or deposits of large sums of cash.

 

 

 

6) Don’t apply for more credit.

The amount you are approved for on your mortgage comes down to your capital. How much money do you have at your disposal? Applying for extra credit increases your debt. This extra debt decreases the amount you will be approved for on a mortgage.

 

 

 

7) Don’t co-sign a loan.

While a loan may not technically be yours – it will still equally count towards your overall debt. Co-signing a loan can have an impact on not only the amount of your mortgage, but approval rate in general. Avoid co-signing any loans until you have purchased your home.

 

 

 

8) Don’t finance a car or furniture.

As financing is again a loan, it is therefore debt. Stay away from financing a car or furniture for the above mortgage approval reasons.

 

 

 

 

 

9) Don’t switch or leave your job.

Financial stability is one of the most important factors considered when a bank is approving your mortgage. The key to financial stability is having a dependable income. If you switch or leave your job, often or before applying for a mortgage, this may signal red flags.

If you are thinking about a move, hang tight with your job until after your mortgage is approved.

 

 

In Conclusion

There are many important things to consider when purchasing a home. It is one of the biggest decisions of your life.

In order to ensure that you get the house you want, when you want it, you need to understand and follow those above tips. Doing so will increase your chances of finding that perfect home and getting it. Remember that financials are very important when it comes time to apply for a mortgage. Make that your priority.

Also keep in mind the emotional aspects of purchasing a home and try to stay cool. It can be a draining process, but it will be worth it when you get the keys to the castle!

Are you looking for a home in the (INSERT COMMUNITY) area? Give me a call. I’d love to help you find a home (and make sure you make none of the above mistakes in the process!)

About the Author

Meet Jonathan Harper

Starting his career in Real Estate in 2006, Jonathan has proven it’s possible to succeed in any market. He started his career with Keller Williams and won the Rookie of the Year award. Over the last 14 years Jonathan’s priorities have helped him build a group of like minded agents and become one of Washington State’s highest producing Teams. Go Pro Homes has risen to the top and sold over 150 homes a year while the average broker only sells 5-7. Our Team priorities are simple – they are his clients. We find nothing more gratifying than a successful sale and a satisfied client.  We are committed to providing excellent service, innovative ideas, and unparalleled standards of honesty and integrity in business.

Our Team is proud to be part of the Keller Williams Puyallup Office, in part because of their vast presence in the marketplace, as well as their forward thinking and advancing service through technology.

The Go Pro Team has sold over 2900 homes since 2007 (we are selling a house every 2 days when the average agent sells 5-7 houses a year!) But that is not why you should hire us.

We are a team of real estate specialists. My role on the team is “Listing Specialist” and I’m proud to say that our homes sell fast and for the most amount of money.

How do we do this and create a great overall client experience? Go Pro has hired a team of consultants, strategists and specialists to ensure that our customers receive the highest caliber of service imaginable. Because we’re one of the highest selling teams in the country, Go Pro attracts talent, and we are excited to get to work for you as your trusted advisors.

*Statistics source are taken from broker metrics.

Awards and Accomplishments

Accomplishments:

  • 2006 Keller Williams Rookie of the year and Bronze award
  • 2007 Keller Williams Silver agent award
  • 2008 Keller Williams Silver agent award
  • 2009 Keller Williams Platinum team award homes sold 100-199
  • 2010 Keller Williams Platinum group award homes sold 100-199
  • 2011 #3 Real Estate group award KW Northwest Regions
  • 2012 REAL Trends “The Thousand” Rankings as Teams by Sides Teams by Volume
  • 2012 #2 Group units award KW Northwest Regions
  • 2013 Double Platinum Group award 200-299 homes sold
  • 2013 REAL Trends “The Thousand” Rankings as Teams by Sides Teams by Volume
  • Jonathan is partner of Keller Williams Realty Puyallup and owner of Go Pro Real Estate

Jonathan’s greatest life accomplishments are his faith, family and friends.

If you are looking for a knowledgeable, dedicated, and compassionate real estate agent.. Call us Today