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.

budgetEver 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.

decisionBuying 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.

buyingAs 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.

mortageWhen 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.

moneyGoing 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.

creditcardThe 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.

loanWhile 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.

carloanAs 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.

jobFinancial 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 Boone, North Carolina or surrounding area? Give us a call. We’d love to help you find a home (and make sure you make none of the above mistakes in the process!) 828-386-6047

About the Author
Sarah Long is a native of Knoxville, Tennessee. She has spent the last 24 years of her life in North Carolina. In 1997 she moved to Boone to attend Appalachian State University where she received her degree in Theatre Education and Communications. She met her husband, Matt Long, a Boone native and general contractor in a “communications class”. Sarah moved to Charlotte to teach soon after graduation. After 5 years of teaching, they were finally given the opportunity to move back to the place they love, the High Country of NC. In 2007 Sarah received her NC Real Estate License and began her new career. After 3 years in the business, she was presented with an opportunity to help open a Franchise Real Estate Company in the area. Lots of growing, education and relationships were formed over the years with this large brokerage. In 2018 Sarah made the decision to step away from a larger company and start to build a smaller, locally focused brokerage. 828 Real Estate is located in vibrant downtown Boone. It is a boutique brokerage firm that focuses on Quality, not Quantity. Sarah is a member of The High Country Association of Realtors, the North Carolina Association of Realtors and the National Association of Realtors. She is also a member of the Boone Chamber of Commerce and on the board for Downtown Boone Development Association. She successfully completed the REALTOR e-PRO course to become one of a select few real estate professionals to earn the prestigious certification offered through the National Association of REALTORS.® The REALTOR e-PRO certification course is an educational program unlike any other professional certification or designation course available, comprehensive and interactive. It is specifically designed to provide real estate professionals with the technology tools needed to assist consumers in the purchase or sale property. On a personal note, Sarah and Matt have 2 beautiful children, Sadie Rose (11) and Levi (9). The Longs attend Alliance Bible Fellowship and stay connected by serving the community by supporting local non-profits like Western Youth Network, The Appalachian Theatre and Valle Crucis Community Park. The Longs love to spend time outside on hikes, on the river, playing with their pup, shredding the slopes and making the most of their time in this amazing place they get to call home!