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As a prospective homebuyer, you are about to take on one of the biggest purchases of your life. There are many things to consider when making this significant investment. Your decisions will range from picking a property location and floor plan preference to choosing a real estate agent and assessing financing options. Knowing mistakes previous buyers have made will help guide you in making wise decisions throughout the process. 

What Are Some Errors to Avoid as a Homebuyer?

1. Spending Too Much   

When you're planning to buy a house, create a budget and stick to it. Calculate the amount of money you can afford to spend before you start searching for a property. The maximum house payment—including principal, interest, real estate taxes, and homeowners insurance—shouldn't exceed more than 25% of your take-home pay. If the down payment is less than 20% of the sales price, you may have to budget for private mortgage insurance (PMI). Ask your Realtor® whether the property requires any condominium or homeowners association (HOA) fees. You can avoid overspending by limiting your search to houses that have asking prices within your budget. 

2. Not Maintaining Good Credit

buying-a-home

The process of buying a home can take a few months, so keep your credit stable during that time. Maintaining a good score allows a lender to give you the best possible interest rate, as well as favorable mortgage terms. 

Lenders check homebuyer credit reports just before closing, so continue to pay all bills on time. Avoid making any drastic changes to your life to protect your record for final loan approval. This includes adding a new credit card, cosigning a loan, or buying a big-ticket item, like a car that requires financing.

3. Choosing Style Versus Structure

Be a smart homebuyer by making a list of items you need and those you want; focus solely on houses that fit these terms. If you need three bedrooms and two bathrooms and want a garage or backyard, consider houses with these features—even if you don't like the outdated wall colors or light fixtures. Your real estate agent knows how to negotiate favorable deals, like a lower sales price or an interior decorating allowance, so that you get the house you want and can perform the upgrade it might need.

 

If you’re a prospective homebuyer, turn to top Realtor Justyna Johnson — ExP Realty. She is a highly-rated, knowledgeable real estate agent and offers more than 20 years of experience to individuals and families buying or selling a home throughout Woodbury, MN. Clients also appreciate her complimentary staging and handyman services. Visit Justyna online or call (651) 501-2345 to start the homebuying process. Text HOME to the same number to receive a TRUSTimate—a free, accurate online property report.

 

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