What Not to Do When Buying a House
- Don’t make a major purchase before closing.
A new car, furniture, appliances, or even large credit-card purchases can change your debt-to-income ratio and potentially affect your mortgage approval. - Don’t open new credit accounts.
Even if you’re approved for a credit card, wait until after closing. Your lender may (and probably will) pull your credit again before settlement. A change in credit accounts or debt can potentially end your transaction. - Don’t change jobs unnecessarily.
Avoid changing employment, reducing hours, or switching from W-2 to self-employment during the mortgage process unless you’ve discussed it with your lender. Lenders look for income stability. If possible, wait to make any employment changes after you have closed on your property. - Don’t move money around without documenting it.
Large deposits, transfers, cash deposits, or money from family can create questions for your lender. Ask before moving money. If you have “mattress money” a/k/a money that is not being held in an account, that money will need to sit in your bank account for a certain amount of time before your lender can count it–talk to you lender about the best way to move forward with mattress money. Even using payment apps such as Cash App or Venmo to deposit large amount of money can turn into a mortgage nightmare. - Don’t spend all of your savings on the down payment.
Don’t be house rich and money poor. Buying the house is only the beginning. You’ll need money for moving expenses, repairs, appliances, maintenance, and the unexpected. Let’s find an option that keeps the most money in your pocket! - Don’t assume the inspection means the house is perfect.
An inspection is a snapshot of the home’s condition—not a guarantee that nothing will ever break. We can discuss home warranty options that can help protect your home and pocket after you close. - Don’t fall in love with the house before knowing what you can comfortably afford.
No one wants to walk into the house of their dreams only to find out you cannot afford it. Getting a preapproval versus “window shopping” can set realistic expectations for the houses in your budget. Your budget should determine what you’re actually comfortable spending. - Don’t ignore property taxes and insurance.
Your mortgage payment is more than principal and interest. Taxes, homeowners insurance, and possibly mortgage insurance can make a significant difference. Taxes and homeowner’s insurance have the ability to increase over time, so it is important to factor in a buffer for what you can afford monthly. - Don’t skip researching the neighborhood.
Visit at different times of day, check the commute, look at nearby amenities, and think about what the area will be like for your lifestyle—not just how you feel inside the house. On the flip side, just because you get a 30-year mortgage doesn’t mean you are stuck in a house for 30 years. Get what works for you. - Don’t assume every repair will be cheap.
Roofs, furnaces, electrical systems, plumbing, windows, and foundations can turn into major expenses. Know the age and condition of the big-ticket items. I can help guide you with information on repair costs and direct you to local professionals. - Don’t make big financial decisions without talking to your lender.
Something that seems harmless to you could affect your loan approval. - Don’t wait until the last minute to ask questions.
If you don’t understand something in your loan documents, inspection, appraisal, purchase agreement, or closing paperwork—ask. As a real estate agent, I understand that a lot of information will be thrown your way–most being unfamiliar territory. There are no stupid questions. - Don’t think your real estate agent and lender are only there to get you to closing.
This is where WHO you work with becomes important. A good team should help you understand the process, identify potential problems, and protect your interests along the way. As an experienced agent, I can help you assemble that will get you to the finish line smoothly!
If you are looking for an experience real estate agent who can help you avoid costly mistakes in your transaction, lets chat!
