3 Mistakes Homebuyers Should Avoid

Buying a home is exciting. It's also probably one of the biggest financial decisions you will make — and there are a lot of moving pieces that you may be navigating.

The good news is that you don't have to know everything before you get started. But knowing a few of the most common mistakes ahead of time can help you make better decisions and avoid unnecessary stress along the way.

Here are three mistakes buyers hould avoid. 

1. Don't Confuse What You're Approved for With What You Can Comfortably Afford

One of the first steps in buying a home is talking with a lender and determining how much you qualify to borrow.

But there's an important distinction between what you can qualify for and what you actually want to spend.

Depending on the loan program and your overall financial situation, you may qualify for a monthly payment that takes up a significant portion of your household income. Just because a lender is willing to approve you for a certain amount doesn't necessarily mean spending that amount makes sense for your lifestyle.

Before you start looking at homes, take a realistic look at your monthly budget.

What payment would allow you to comfortably cover your other expenses? Do you want room in the budget for travel, eating out, hobbies, saving for retirement, or simply having some breathing room each month?

There's nothing wrong with buying below your maximum approval amount. 

Start with the payment you're comfortable with, not simply the maximum purchase price you qualify for.

2. Don't Make Major Financial Changes Without Talking to Your Lender

Getting pre-approved isn't the end of the financing process.

Your lender may continue reviewing and verifying your financial information throughout the transaction and before your loan closes. Changes to your credit, employment, income, or debt can potentially affect your ability to qualify.

That means the time between getting pre-approved and closing on your home generally isn't the time to finance a new vehicle, open a new credit card, take out a personal loan, or make a major career change without first having a conversation with your lender.

Even something that seems completely unrelated to buying your home could change your financial picture.

A simple rule we like to give buyers is:

If you're considering a financial change while buying a home, call your lender before you make it.

That quick conversation could save you from a much bigger headache later.

3. Don't Try to Navigate the Process Alone

You're navigating pre-approvals, contracts, inspections, appraisals, earnest money, insurance, financing, closing costs, repair negotiations, deadlines, and plenty of other things — often all at once.

You shouldn't feel like you're expected to figure all of that out on your own.

Surround yourself with people you trust and feel comfortable asking questions. Your real estate agent, lender, home inspector, insurance agent, closing attorney, and other professionals involved in the transaction have experience that can help you understand the decisions you're making.

A good professional shouldn't just tell you what to do. They should help you understand why, explain your options, point out potential concerns, and give you the information you need to make your own informed decision.

Their experience can also help you recognize potential pitfalls that you simply wouldn't know to look for as a buyer.

This is your home and your money. You deserve to understand the process.

You Don't Have to Know Everything to Buy A Home

Buying a home can feel like a lot, but you don't need to become a real estate expert before you start.

Know what you can comfortably afford. Be careful about making financial changes during the process. And most importantly, surround yourself with experienced people you trust.

The goal isn't to know everything going into a home purchase — it's to have the right people beside you when you don't.