Shopping before getting pre-approved. Without consulting with a mortgage company first, you aren’t going to know how much house you can afford. And if you find a home you want to buy, sellers in today’s market may disregard your offer if you aren’t pre-qualified by a mortgage company.
Looking for homes on your own. Tap the experience and knowledge of a good Realtor. Especially for first-time buyers, a Realtor can provide another perspective on the home you’re thinking about buying and help you avoid common home-buying pitfalls.
Using up all your savings on a down payment. Many buyers want to put as much as possible down on their home purchase to lower their monthly payment and to reduce or eliminate mortgage insurance premiums. But doing so can leave little cash left over for unanticipated expenses.
Making a big purchase before closing. It’s not unusual for home buyers to lose their financing after making big purchases of items such as furniture and vehicles before their loan is finalized. Your mortgage company may pull your credit report right before closing, and anything out of the ordinary could be a deal-killer. So wait until after it’s a done deal before you buy big-ticket items.