6 Mistakes to Avoid When Buying a Home

6 MISTAKES TO AVOID WHEN BUYING A HOME

Anytime you are buying a home, it can be stressful. In today's market where it is shifting toward a seller's market , it is especially important to be prepared and to avoid missteps that could cost you a home that you have fallen in love with. Here are our top 6 Mistakes To Avoid When Buying A Home!

1. Waiting To Arrange Financing

"I am sure I won't have any problem getting a loan. I just want to find the right house first." We hear this sentence every day and I cringe every time. Today's market is competitive and homes are selling quickly. The seller is not going to wait for you to get your financing lined up. You should meet with a lender and get pre-qualified or pre-approved before you start your search . That is the only way you can be ready to make an offer when you fall in love with a home.

2. Not Using A Reputable Lender

When shopping for a lender, make sure you ask for recommendations. Your real estate agent and friends or family who have recently purchased are great resources. Don't be afraid to ask questions! Were they able to the loans they took? Did they close on time? Were there unexpected costs? Did they stay in touch during the process? This is one of the largest purchases you will make and involves a great deal of your hard earned money. Make sure who you choose to handle the financing is trustworthy.

3. Shopping Outside Your Price Range

It is tempting to "just want to take a look" at that home that is $25,000 outside your price range. In such a competitive market this just sets you up for frustration. If you love the house, but you can't make an offer that is close to asking price, it will be difficult to compete with other buyers.

4. Making Lowball Offers

You may think it can't hurt to try a lowball offer...just to see if the seller will accept. Don't assume the seller will counter offer. In a seller's market, it is not unusual for a home to sell at or above the asking price. There could be other buyers making offers at the same time. One of those offers could be better than yours. You may not get a second chance to offer. Your real estate agent can be a huge help in the negotiation process. They can compare the home you are interested in to other homes that have sold to give you the best chance at winning your bid without overpaying.

5. Spending Money After Getting Pre-Approved

Once you set up your financing for a home purchase, don't open any new accounts, don't make any big purchases on credit, don't withdraw large amount of money, don't change or quit your job. In short, don't do anything to change your finances. Your lender will re-check your credit prior to closing and if your credit score or debt-to-income ratio has changed, the lender may not be able to close your loan. It might be tempting to go buy new living room furniture, but just wait until after closing.

6. Not Planning For Closing Costs

While there are great financing options out there, almost all loans require that the buyer pay some closing costs. Your lender should be giving you an estimate of what your out of pocket costs to close should be. Make sure you talk to the lender about how much those costs could be and make sure you plan to have that available for closing day. You could also have other expenses outside of closing such as inspection costs. Your real estate agent can help you plan for those expenses.

About Fontaine Family – The Real Estate Leader®

Fontaine Family – The Real Estate Leader® is proud to be one of the most recognized and awarded real estate teams in New England. We were honored as Maine’s 2019 Family-Owned Business of the Year , voted Best Real Estate Company in both the Greater Lewiston/Auburn Area and Greater Portland Area , and most recently recognized by RealTrends as one of America’s Top 500 Independent Real Estate Brokerages, published in the Wall Street Journal —ranking in the top half of the top 1% of real estate professionals nationwide. We were also named a Top Brokerage in New England by The Boston Globe , reflecting our unwavering commitment to excellence, client satisfaction, and results.

With offices located at 336 Center Street in Auburn and 432 US Route One in Scarborough , we proudly serve clients across Maine and New Hampshire —delivering personalized, expert guidance for all your real estate needs.

Ready to make your next move with a top-performing team you can trust?

📱 Download our free app – "Fontaine Family Real Estate", visit BrendaFontaine.com , or call us at (207) 784-3800 or (207) 289-3830 to get started today!

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6 Mistakes to Avoid When Buying a Home