Don’t lose a Home by Making these Common Homebuying Mistakes
- Shopping Outside of your Price Range: Some buyers have trouble staying within a budget, especially when searching for homes online. One way to avoid this is to get preapproved for a loan so you know what you can truly afford.
- Offers in a Hot Market: Housing inventory is low in California, making it a sellers market. Be smart about your offers and work with a REALTOR to craft a competitive offer.
- Making a Big Purchase While in Escrow: Don’t make large purchases while in escrow. Mortgage lenders often run last-minute credit checks and a new credit line could jeopardize your mortgage approval.
- Forgetting to Budget Closing Costs: Buyers don’t just need money for the down payment. There are a lot of extra fees at settlement, too. Make sure you review your estimated closing costs from your mortgage lender. While they can vary, closing costs typically range from 2%-7% of the home’s purchase price.