5 Costly Mistakes Home Buyers Make

Mistake #1 - Not knowing what you can afford before making an offer.

The best way to avoid this is to get pre-approved for a mortgage so you know exactly how much you can afford. Pre-approvals are free with a bank or mortgage broker. Getting pre-approved also enables you to "lock in" the mortgage rate you want--usually for 90 days.

Mistake #2 - Not knowing who the agent represents.

Unless an agent is working as your exclusive buyer representative, they represent the seller. Many people don't realize this. Remember that the seller's agent does NOT have your best interests in mind. 

Mistake #3 - Choosing the wrong mortgage.

A bad mortgage can cost you thousands in taxes and interest. Shop around or use a qualified mortgage broker.

Mistake #4 - Not finding problems with the home before buying it.

You should always have a professional inspector look at the home before buying it, otherwise you could be looking at huge repair costs later on. 

Mistake #5 - Not understanding how your credit can impact your ability to purchase or refinance a home.

Get a mortgage professional to help you go over and prepare your credit file before you buy a home. Read these tips for more about your credit history.