Buying a home is likely one of the most important financial decisions you will ever make. Here are some common mistakes you should try to avoid:
- Do not buy anything on credit and / or with a credit card once you have completed a loan application. Slight alterations in your credit ratios could cause an underwriter to withdraw your loan offer. If your mortgage contingency has expired or been removed, you could forfeit your earnest money deposit in addition to not being able to buy the home. Don’t even apply for a new checking account because that will involve a credit check.
- Don’t change jobs or resign if you need financing to close on your new home.
Your loan qualification was based on your current position, so changing that could jeopardize that. - Forgetting about added costs. There are maintenance costs and property taxes to be paid when you own (although these can be offset by the income tax credit that you’ll now be eligible for).
- Don’t assume fixtures and fittings are staying unless you have it in writing. Common points of contention: window treatments, hot tubs, light fixtures, shower and bath fixtures, ceiling fans and big appliances, such as washers and dryers.
- Don’t skip the home inspection. You could end up with very expensive repairs that are not obvious to untrained eyes. Also, if there are issues you may be able to negotiate on the price. A good home inspection is worth it’s weight in gold in terms of peace of mind.
- Try to keep contingencies to a minimum when you make an offer, but avoid removing them for as long as possible. This way you have an attractive offer for the seller, but you are protected for the things that are contingent, such as financing.
Here’s some information to get you started on the process.
Have questions about buying a home in Virginia, West Virginia, or Maryland? Contact me today for answers.
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