Not Getting Pre-Approved for a Mortgage

Many buyers start home shopping without knowing their real budget.

Why Pre-Approval Matters:

Sellers take pre-approved buyers more seriously, especially in competitive markets. Without pre-approval, you might miss out on your dream home.

How to Get Pre-Approved:

Gather financial documents like income statements, credit reports, and bank statements before applying.

Common Pitfalls to Avoid:

Avoid making major financial changes (e.g., taking on new debt) during the pre-approval process, as it can jeopardize your loan eligibility.

Overlooking Additional Costs

Include property taxes, closing fees, maintenance, and insurance.

Hidden Costs of Homeownership:

Beyond the mortgage payment, buyers often forget about expenses like HOA fees, utility bills, and unexpected repairs.

Budgeting Tips:

Set aside 1–3% of the home’s purchase price annually for maintenance costs.

Examples of Overlooked Costs:

• Property taxes that increase after reappraisal.
• Closing fees such as legal fees and stamp duty.
• Insurance premiums that vary by location and property type.

Skipping Home Inspections

Avoid unexpected issues and hidden repair costs.

What a Home Inspection Covers:

Inspections can reveal structural problems, mold, pest infestations, or outdated electrical systems.

Financial Risks of Skipping Inspections:

Repairs like replacing an HVAC system or roof can cost $10,000 or more. Without an inspection, these costs become the buyer’s responsibility.

Negotiation Leverage:

An inspection report can help you negotiate repairs or a lower purchase price with the seller.