There is a lot of excitement that goes into Buying a new North Iowa home. With that excitement, mistakes can occur during the home buying process. And, these mistakes can keep buyers from successfully buying their dream home. Do not let this happen to you! Avoid these common mistakes and become a home buying pro!
Mistake 1: Holding Off On Financing. Financing should be the very first step you take, even before you begin your home search. With your financing in order, you are able to set an appropriate budget for yourself and only look at homes that fit within that perimeter.
Mistake 2: Picking the Wrong Lender. Not all lenders are the same and some can actually be a huge scam. Always research potential lenders and also ask your realtor if they have any recommendations for good lenders in the area.
Mistake 3: Thinking Pre-Qualified Means Pre-Approved. Just because you are pre-qualified are you able to buy a home. Pre-approval, which requires you to go through the documentation process, is what buyers are actually needing to see when you make your offer.
Mistake 4: Low-balling Your Offer. Never insult the seller by offering too low, especially for something with as much sentimental value as a home. You want to get a good deal on the property but always try for it within reason.
Mistake 5: Not Being Frugal. Just because you are pre-approved does not mean that your loan is completely in the bag. Your lender will begin going through your finances right before closing. Your debt to income ratio will be checked and if it has become to large, your loan could be revoked. To remove any of these concerns, stay away from making large purchases.
Mistake 6: Forgetting About Closing Costs. You never want to find yourself without the necessary funds to cover closing costs. Make sure that after all other expenses that go into buying a home that you can pay these final fees. Ask your lender for the estimated closing costs so you can budget ahead.