Buying a new home is a big decision and a roller coaster of emotions. It’s easy to get caught up in the excitement and make mistakes that could leave you feeling frustrated and disappointed. If you’re in the market for a new home, take care to avoid these four common home buying mistakes that could blow the whole deal.
- Looking for a Home Before Applying with a Mortgage Lender. It’s easy to venture outside your price range, especially when looking at homes online. The best way to stay within your budget is to get pre-approved by a lender so that you’ll have a clearer idea of exactly what you can afford to spend. In fact, any offer you make on a home won’t even be taken seriously by a seller or their agent without a pre-approval letter from your lender, so get that first!
- Offering Too Little. Like much of the country, Houston is currently experiencing a Sellers’ Market. Housing inventory (the number of “for sale” homes available) is low, which means buyers must bring a competitive offer in order to win the deal. The Rhoades Team can help you craft a winning bid!
- Overlooking Closing Costs. Not only will you need money for a down payment, you’ll also need to budget money for extra fees at settlement. Sometimes a deal can be negotiated where these costs are rolled in or paid by the seller…and sometimes not. While fees will vary, generally a buyer’s closing costs are about 3% of the purchase price when using a lender. If you’re paying cash, closing costs will be far lower.
- Making a Large Purchase During Escrow. Avoid making any large purchases, like a car or a boat, before closing on your home purchase. Your lender will likely have to run additional credit checks later in the escrow process, and a new credit line could threaten your chances of being approved for a mortgage loan.
Submitting competitive offers, being mindful of your budget and closing costs, and avoiding large purchases during escrow could save you from losing your dream home. The Rhoades Team has experience walking buyers through every step of the process, and we can help you, too! Give us a call at (713) 515-3463 to get started.