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 (INSERT COMMUNITY) area? Give me a call. I’d love to help you find a home (and make sure you make none of the above mistakes in the process!)

About the Author
With over a decade of real estate experience, Damian Hall is a recognized leader among Greenville area young professionals. He has worked with a number of CEO’s, physicians, professional athletes, and celebrities. Originally from Charleston, Damian has been a resident of downtown Greenville for the past 5 years. He could not be happier that all of his favorite lowcountry restaurants like Halls Chophouse, Caviar & Bananas and Husk, are starting to make their way into the Greenville market. Damian distinguished himself as a top player in the luxury arena with RE/MAX prior to accepting an offer from Blackstream Christie’s when they opened their doors in Greenville. He has marketed and sold several of the most expensive properties in the upstate of South Carolina and foothills of Western North Carolina. Damian takes pride in his team’s Ritz Carlton style service and attention to every detail. He brings to the table a multitude of real estate and marketing experience, including luxury residential, equestrian, commercial, development projects and property management. This vast understanding allows Damian to confidently handle complex transactions making him your luxury home and horse farm authority. Damian’s knowledge of our community, understanding of his clients’ needs, and proven marketing strategies has made him one of Greenville’s most sought after Real Estate Professionals. His marketing acumen and passion have led him to several keynote speaking engagements at national conferences. After seeing the need for accommodations near the new Tryon International Equestrian Center, Damian founded Tryon Retreats. Tryon Retreats is a luxe vacation rental company offering accommodations for horse shows and mountain getaways in Lake Lure, Tryon, Saluda and the surrounding foothills of North Carolina. Tryon Retreats is now recognized as the premier vacation rental firm in the area, managing over 60 farms, lake homes, cabins and estates. Outside of the office, you’ll find Damian either on a boat on Lake Keowee, enjoying downtown Greenville’s festivals and restaurants, or on a horse in Tryon’s famed Hunting Country.