you if you promise them a certain amount and then end up not being able to fulfill that promise because you don’t have the approved home loan to back it up. Your own assumption about what you can afford — both the down payment and the monthly mortgage payments, among other costs — can contrast significantly with what the bank is willing to lend you. This is especially true if you have poor credit or unstable income. Please refer to Chapters 16 and 17 regarding steps you need to take before the home-search process to ensure that your credit and finances are in good shape and you’re ready to make the jump back into homeownership: • Improve your credit score. • Start saving up for a down payment and closing costs. • Build up your savings account. Please ensure you have official pre-approval for a home loan before visiting properties and placing an offer. If you work with a qualified buyer’s agent, then they will help you make sure everything is in order. Otherwise, you’ll end up wasting the seller’s time, the agent’s time, and your own time if you make an offer, enter into a contract, and only then learn that the bank won’t lend you what you need for a down payment and mortgage.
Mistake #7: Not Conducting a Home Inspection
Don’t make the mistake of relying on the seller to let you know that a home inspection has already been completed on their end and tell you what the home’s issues are. Some sellers are sneaky and don’t reveal some of the property’s problems, whether minor or major. Many buyers assume this means they don’t need to conduct their own professional home inspection, but ignoring your inspection is not recommended. Yes, it takes time, and yes, there’s a cost, but it could cost you a whole lot more if you skip this step. 181
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