October 11, 2023 | Buying

Buying a home requires a series of steps and procedures that must be carefully followed to ensure a seamless and efficient process. These steps include scheduling an inspection, conducting a final walk-through, booking movers, and preparing for the closing. Yet, beyond these imperative steps, there are also several critical things that every homebuyer should avoid doing before closing on a home. In this article, we will provide insight into the precautions that homebuyers should take to ensure a successful closing on their new home.


  • Selecting the first mortgage lender you meet

    When seeking to purchase a home through a mortgage loan, it is crucial to explore multiple lenders. Doing so can furnish you with the utmost accurate details on interest rates and assist you in establishing a suitable budget for your new residence. This data can also be utilized to equate your down payment and monthly payments, thereby ensuring that they remain within your means.

  • Extending an offer without a pre-approval letter

    When purchasing a house, it is imperative to obtain a pre-approval letter from a mortgage lender. Doing so can distinguish you in a fiercely competitive market and provide an advantage over other potential buyers. Should you submit an offer on a house without a pre-approval letter, and the seller receives multiple offers from other buyers, they may opt for an offer from someone who has already acquired pre-approval. Therefore, it is worth obtaining pre-approval before commencing your home search.

  • Putting an offer on a home you can’t afford

    When purchasing a house, your mortgage lender may suggest a loan that you qualify for, but may not be comfortable for you to afford. It’s crucial to determine upfront how much you can afford to pay on a monthly basis and to stick within that range, regardless of the loan offer from your lender. To come up with an ideal offer price, it’s imperative to factor in your monthly expenses such as memberships, car payments, and tuition payments, as well as homeownership expenses like maintenance and insurance. By doing so, you can make a well-informed decision that will allow you to comfortably afford your new home without facing undue financial stress.

  • Skipping the inspection process

    When purchasing a property in a highly competitive market, the temptation to forego a home inspection or expedite the closing process in order to make a more attractive offer may arise. However, it is imperative to remember that home inspection is a critical component of the home-buying process. It can reveal any major issues that the property may have, safeguarding you against unforeseen and costly surprises in the future.

    In the event that any issues are discovered during the inspection, the seller may elect to cover the cost of repairs or you, as the buyer, may opt to withdraw from the deal altogether. Therefore, it is worth taking the time to thoroughly evaluate the property before making any final decisions.

  • Making large purchases

    It is essential to keep in mind that it is not recommended to make significant purchases, like a car, furniture, or a vacation, until after signing the closing papers and officially becoming the property owner. Such expenses can potentially affect your credit score and available credit, thereby impacting the mortgage loan you originally qualified for and eventually affecting the sale of the property. Hence, it is advisable to proceed with caution and avoid making any substantial purchases until the deal is closed, and you have the keys to your new home.

  • Co-signing a loan

    When you agree to co-sign a loan, it may raise a red flag for the borrower. This act of co-signing means that you are willing to assume responsibility for the debt of another person. However, if the lender regards the overall debt, encompassing both the principal and interest on the mortgage, as excessive, it could adversely affect your likelihood of obtaining loan approval.

If you’re interested in making a move and want more information about the home buying process and how our team can assist you in making it a smooth and seamless process, contact us today – we love to help!