Whether you’re a Zillow window-shopper getting ready to make the leap to first-time homeownership, or you’re looking for a home to add to your investment portfolio, there are a few places where industry outsiders get tripped up on their house hunting journey. At The Federal Savings Bank, we know buying a home may be overwhelming, but don’t fret– here are some common mistakes that you can avoid as a homebuyer purchasing a new home.
There are great tools out there for evaluating how much home you may afford (The Federal Savings Bank has an excellent mortgage financing calculator, for example). But even after you have calculated the ideal mortgage payment, avoid one of the most common homebuying mistakes by taking your eyes off the price of the home for a second. Don’t forget to look around for other options in the market. Consider other factors that might not be directly reflected in the value of your home, like the unique charming fixture in the living room, the character of the neighborhood, or the home’s proximity to loved ones.
There’s no harm in looking at homes – even attending open houses – without a pre-approval letter from a home lender. But don’t get too distracted by all the fun of imagining your life in these new homes! Even if you have a good idea of how much house you and any co-borrowers may afford, there’s no substitute for getting a financial plan ready by being pre-approved for a mortgage by a lender like The Federal Savings Bank.
In fact, Investopedia has strong words for people who are thinking about house hunting without a pre-approval: “[You’ll] be wasting the seller’s time, the seller’s agent’s time, and your agent’s time if you sign a contract and then discover later that the bank won’t lend you what you need—or that it’s only willing to give you terms you find unacceptable.”
How can you get started on your pre-approval today? Fill out an application today and one of our pre-approval professionals will be in touch to help you begin the journey to the home of your dreams.
Subject to credit approval. Terms and conditions may apply. Property insurance is required on all loans secured by property.
This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For more information on financial planning or investment advice, consult a registered investment advisor or financial planner. For tax advice, please consult a tax professional.