Don’t: Get tripped up on low-interest rates
Lenders know that rookie homebuyers can be lured by low interest rates. Some lenders take advantage of this by offering low rates only to add higher backend fees. Remember: lower interest rates can be a good thing, but if you don’t plan on staying in your home for 20-30 years, fees you pay to get them may offset the perceived benefit of the lower rate.
Don’t: Fall for your first
Resist the temptation to make an offer on the first home you like. Shop around and take your time before committing to one of the biggest financial relationships of your life. Also, take time to become an expert in the area you’re looking. Get to know the home values in the neighborhoods you are considering and ask your Realtor for the sales price of homes that have recently sold in those areas.
Don’t: Forget about closing costs
Closing costs include expenses like title and settlement fees, taxes and origination, plus prepaid items like homeowner’s insurance or homeowner’s association fees
A pre-approval may also provide you with some important information that could impact some of your home buying goals. You will be able to review your estimated payment as well as the required monies needed at closing. You will also be able to review your credit score which can impact the interest rate you will be able to get. If you are not purchasing a new home soon, there may be some time to improve your credit score. Lastly, and maybe most importantly, you will have the knowledge of the steps involved throughout the purchase process.