Things NOT To Do When Buying a New Home
Lots of people will tell you what to do when buying a new home. They give you advice on where to find your real estate agent, where to get the best mortgage rates at, even what color to paint the bathroom. In fact, you may have people in your own family telling you these things. Rarely does anyone tell you what NOT to do when buying a home. While this is not a scientific or exhaustive list, it should make you think:
- Do not changes jobs, quit your job, or become self employed prior to closing. Doing any of these may at best may make more paperwork for your loan officer and at worst disqualify you for that new mortgage.
- Do not start to spend for the new house until you are in it. Charging up your credit card on all those new furnishings could throw your debt to income ratios outside the boundary where you qualify for the mortgage.
- Do not use someone to inspect your new home that is not a full time inspector. Often home buyers will use a dad or an uncle to inspect the home and that person will simply miss things that can cause problems later.
- Do not get a divorce, file bankruptcy, or be charged with fraud prior to closing.
- Do not use a real estate agent that specializes in one area to help you in another. For example, don’t use a Maple Grove Real Estate agent to show you Eden Prairie Homes. It may work out, but if possible, use someone that specializes in the area you are interested in.
- Do not purchase a home that is more expensive than you feel comfortable with. Even if your mortgage broker says he can approve you for it, if you are not sleeping at night because of the payment, you are going to regret your decision.
- Do not forget that the clean, neat, or cute house is not always the best value. Use logic to purchase. That cute baby’s room may be too small in 5 years when you put a regular bed and dresser in there.
These are just some common sense ideas will help you eliminate problems during the home buying process.