10 Things You Should Not Do When Buying A Home
1. Avoid Major Purchases: Wait until after closing to make large purchases like a new car, as it could affect your debt-to-income ratio and jeopardize your mortgage approval.
2. Minimize Job Changes: Consistent employment history is preferred by lenders, so it's best to avoid changing jobs before closing if possible.
3. Protect Your Deposit: Ensure your earnest money deposit is held in a trust account rather than given directly to a for sale by the owner seller to avoid potential complications.
4. Stay Rational: Keep a level head during the closing process, particularly during inspections, and be realistic about the condition of the home. Don't let emotions sway your decisions.
5. Switch Utilities Promptly: Contact utility companies early to transfer services to your new home and remember to discontinue services at your old residence.
6. Secure Hazard Insurance: Obtain insurance coverage for your new home before closing to avoid delays, and discuss additional coverage requirements with your lender.
7. Maintain Boundaries with Sellers: While it's good to be friendly, avoid becoming too chummy with the sellers to prevent conflicts that could impact negotiations or the closing process.
8. Handle Low Appraisals Calmly: Don't panic if the appraisal comes in low initially. Work with your agent to address the issue constructively.
9. Leverage Your Agent's Support: Rely on your agent for guidance and assistance throughout the closing process, as they are there to help navigate the details.
10. Meet Lender Requirements: Stay proactive in fulfilling lender requirements, such as providing necessary paperwork promptly, to ensure a smooth closing.
These tips will help you navigate the real estate purchase process more effectively and increase the likelihood of a successful closing.