It’s a well-known joke that basically every real estate agent will always tell you that now is a great time to buy a house. Apparently there’s literally never a bad time. However, with mortgage rates currently at truly historic lows, those realtors may be right. If you’re ready to take the plunge, we’re here to help.
If this is your first home purchase, there’s a good chance you could use some guidance. Home buying is a big process, involving a lot of paperwork and plenty of pitfalls. Take a look at some of the biggest home buying missteps newbies often make. Don’t fall victim to these classic home buying mistakes:
14. Making Major Life Changes While Shopping For a Mortgage
This one should be obvious, but plenty of people seem to ignore it. You should always seek out a mortgage pre-approval (more on that in a bit). While doing that, it’s can be a huge hindrance to be making major life changes at the same time. The pre-approval process analyzes your entire financial life. So don’t threw a wrench into things by suddenly changing your careers, starting your own business, getting divorced, or taking on more debt. Don’t open a new credit card or buy a new car in the middle of house shopping. They are major red flags for banks.
You should be aware that making a major life change can have a big impact on your house shopping. You may no longer qualify for a mortgage, even if you were pre-approved. It could also seriously impact how much house you can truly afford. That means all your previous research is useless, since you were looking at houses in a price range you can no longer afford. Do yourself a favor and keep the rest of your life (financial and otherwise) status quo until close the deal on your new house.