Common Buying Mistakes

Buying a home can be an exciting, yet nerve-wracking experience, especially if you are a first-time homebuyer. Because a home purchase is not complete until the keys are in hand, if you’re not careful in the days and weeks leading up to your closing, you could actually put your sale in jeopardy. Many buyers tend to make costly mistakes during the mortgage and home-buying processes. Avoid these common home-buying mistakes and keep the stress to a minimum.

Mistake 1: Changing Jobs Before Closing

Lenders want to see stable employment history. Switching jobs during the mortgage process — especially changing industries or moving from salaried to self-employed — can raise red flags and in some cases cause your loan to fall through. If at all possible, wait until after closing to make any career changes.

Mistake 2: Making Large Purchases on Credit

Buying a car, new furniture, or other large items on credit during the mortgage process can change your debt-to-income ratio and cause your loan to be denied. Even if your credit limit allows it, lenders will see the new debt during underwriting. Hold off on any major purchases until after the keys are in your hand.

Mistake 3: Not Getting a Home Inspection

Skipping the home inspection to make an offer more competitive is a significant risk. A home inspection protects you from buying a property with serious hidden defects. Even if you waive the inspection contingency, consider at minimum a pre-offer inspection so you know what you’re getting into.

Mistake 4: Draining All Your Savings for the Down Payment

Lenders want to see that you have reserves — funds left over after closing. Buyers who put every dollar into the down payment and closing costs can find themselves in a precarious financial position if an unexpected expense arises shortly after moving in. Maintain a cushion.

Mistake 5: Making Decisions Based on Emotion

It’s easy to fall in love with a home and make impulsive decisions. Overpaying, overlooking red flags, or bidding beyond your budget because you’re emotionally attached to a property can lead to long-term financial stress. Work with your Avonya agent to evaluate every property objectively.