Your first real estate purchase is always going to be a nerve-wracking but exciting experience. There are simply a lot of things to do in this process, and for a new buyer, this can be scary. As such, mistakes are quite common, especially ones that could potentially cost them mortgage approval or a dream house. Here are six of the most common mistakes new home buyers can make but should avoid:
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Credits and purchase decisions
Credit history is vital for getting a loan and this is where most first-time buyers fall short. Not keeping tabs on the credit score and situation and reckless purchases using the card are just some of the most common mistakes they make. It is advisable to check the credit health and controlling expenses using the card before the mortgage is approved.
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Premature searching
Searching for homes and making an offer even before getting pre-approved is a common folly that newbie buyers make. In a competitive market, this action can lead to a rejection of the offer; sellers simply would not take you seriously.
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Not looking for options
Not shopping around for mortgage options is yet another mistake that new buyers make. Looking for better options will allow you to negotiate better with the lender you finally choose. Moreover, several websites even let you compare different rates and options, so you can choose the best one for your financial situation.
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Going overboard
You may want to start purchasing appliances and furniture as you wait for the mortgage to be approved. However, now is not the time to be making big purchases using your credit card or even opening new lines of credit. Moreover, it is a mistake to go to a house you cannot afford.
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Switching jobs and careers
The time between pre-approval and actually getting a mortgage is a critical period. This is not the time to change jobs. The reason is simple; the mortgage is pre-approved based on a specific job and salary. Changing it mid-way doesn’t help you with your credit-worthiness.
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Skipping home inspection
Skipping a home inspection in Foley AL can be a costly mistake, especially for new buyers because of unforeseen repairs and damages in the property. This process will give buyers an option to retract their offer if a severe issue comes to the light. Avoiding this step can lead to buyers having to foot the bill for all repairs.
Conclusion
Buying a house for the first time may seem overwhelming. However, with patience and the right approach, the whole process can be slightly easier. As such, making the mistakes mentioned above can be detrimental to the purchase and the financial goals of an individual. Therefore, it is best to stick to the step with some patience.
