Whether you’re a first-time homebuyer or you’ve done this before, we can all agree that purchasing a home is daunting. All that paperwork, all that money and the mountains of uncertainty that come with it are enough to make buyers want to rent forever.
What if you were confident that you could afford a home? What if you knew about common homebuyer mistakes before you made them? We are here to help! Here are three pitfalls that we want you to avoid in your quest for homebuying bliss:
Pitfall #1: Not getting preapproved for a mortgage before you begin house hunting.
When you’re looking for a home, it’s tempting to skip ahead to the fun part. Spoiler alert: talking to a mortgage professional is NOT fun for most people. Here’s why it’s necessary:
- Knowing what you can afford directs your house-hunting efforts to homes within your means.
- It allows you to get a home loan that’s tailor-made for you.
- A preapproval tells sellers that you’re serious about your search and have your finances in order.
Pitfall #2: Forgetting to include fun in your budget.
When lenders determine how much money they’re willing to let you borrow for a home, they take a pretty detailed look into your finances. Unfortunately, they don’t look at the “extra” purchases we all make from time to time. In other words, they don’t consider how your kid’s travel baseball expenses or your annual vacation fit into your homebuying budget.
Our advice is to be honest with yourself. You might get preapproved to spend a certain amount on a home, but would you be happier if you spent less and had a little more cash on hand each month?
Pitfall #3: Hoping that all the paperwork will magically disappear.
Guess what? That paperwork isn’t going anywhere, so take the time to understand it! It includes vital details, such as your mortgage rate, loan terms and how much cash you’ll need at closing.
Are you ready to buy a home? Connect with MortgageDepot today to learn more about securing a mortgage in 2022!
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