Home-Buying Mistakes
Mistake #1: Changing Your Job
If you hate your job or are in danger of losing it and may need to make changes, keep in mind that this may jeopardize qualifying for a loan. If you do need to make a change, keep it in the same line of work you presently have.
Mistake #2: Running up or Ruining your Credit
It's best to hold off on major loans. Plan on running the old heap a bit longer, a new car loan may have disasterous effects on your debt ratio. Check into your credit and see if there are any negative reports that can be changed. Old medical collections can generally be removed, for example, with some effort. Pay off your credit cards as much as possible to reduce your debt load.
Mistake #3: Falling in Love with the New House
Obviously, the whole point of making a move is to find a home you'll love, but try to keep your emotional attachment to a minimum until after the deal is done.
Mistake #4: Going it alone
Relying on your Uncle Ned, who happens to be a carpenter, to inspect your prospective new home is not a good idea. Engage the services of a home inspector. Your real estate agent can assist you with this. It's also well worth it to engage a real estate attorney. Many mortgage companies work with title companies to handle the paper work, sidestepping the need for an attorney, but in this complex transaction it is well worth the extra expense to have someone knowledgable in your court.