Nothing is more frustrating than learning that, even though you make enough money to afford your dream home, you cannot qualify for the mortgage you need. This may happen because your credit score is low or because you cannot verify your income in a way that satisfies your lender. To avoid this pitfall, investigate lenders’ requirements before you begin the application process and make sure you meet them all.
You Discovered Problems With The Home After You moved In
In some cases, a home may seem perfect at first glance, but problems may be hiding in plain sight. You may move into the home and find that it has a pest problem, leaks, or a broken furnace. The best way to guard against this pitfall is to ask for a home inspection before you buy the property.
The Appraisal Amount Isn’t High Enough
Some homebuyers make an offer on a property and hope to get a mortgage to cover the purchase price, only to learn that the property doesn’t appraise for the amount of the requested mortgage. This is more likely in cases where the homebuyer is rolling closing costs into the mortgage. When this occurs, you can either pay the difference, ask the seller to lower the purchase price, or cancel the sale altogether. You can avoid this pitfall by investigating home values before you make an offer, or by saving up a large downpayment that would allow you to pay the difference.
You End Up With Bad Neighbors
Chances are that sellers will not be upfront about any problems they may have with neighbors, since these problems could potentially cause you to pass on the home. For this reason, it is always wise to do your own research before you move into any neighborhood. Consider driving by at night to look for any activity that might make you unwilling to live next door.
The Closing Takes Too Long
It can be incredibly frustrating when it takes weeks or even months to close on the property you love. In some cases, this pitfall may be unavoidable. However, you can reduce the risk of a long closing by having all of your loan documentation ready in advance and avoiding the purchase of homes that may have an extra-long closing process, such as real estate owned properties and short sales.
