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Home Buying Mistakes to Avoid

10-30-2017
Mistake #1: Not getting pre-approved. Getting pre-approved for your mortgage will serve two primary purposes: it gives you an idea of how much you can afford for your house payment, and it also shows sellers that you are serious and ready to buy. Do some research on local lenders and find one that you trust that you are comfortable working with for the duration of the home buying process. The lender will gather relevant financial documents including tax returns, pay stubs, bank statements, and more. This information will allow the lender to crunch numbers and give you an accurate estimate of what you can afford. This will be included in a pre-approval letter and once you have that, you can start shopping for homes that meet your budget criteria.

Mistake #2: Not creating a long-term budget. Once you have information on the house payment you can afford, look closely at your other spending habits and determine if you want to buy a home for the full amount you’re approved for, or if you want to stay under that. Examine your must-haves in your spending and bills and figure out what you can cut back on to make your home buying dream a reality. You should set a long-term budget that will allow you to pay your mortgage comfortably every month.

Mistake #3: Not getting what you really want. When you start shopping for homes, make a list of things that you must have in a home and other things that are not entirely necessary. There may some things that you can compromise on, but if you sacrifice some of the things you really want in a home, you’ll likely end up regretting it later down the road.

If you have decided that now is the time to start the process of buying a home, congratulations! This is an exciting step in your life and you’ll soon be able to experience home ownership and all that goes with it. If you’ve dreamed of building your own custom home, we can help with that! We also have already constructed homes available right now in the Timber Crest neighborhood. Contact our team at Alder Fine Homes today for more details.