Buying a home is one of the most stressful things a person can experience. There are some common mistakes made by first-time home buyers that often throw transactions into turmoil. The mistakes are simple and easily avoided if you’re aware of them. The San Francisco home buyer market is competitive these days and it helps to be informed.
- Don’t go shopping for a new car, furniture, or anything else that will require someone to pull a credit report until after you purchase a place. Inquiries on your credit report hurt your score and cause mortgage rates to be higher. This is especially important after you’ve found a place and put it under contract, but it hasn’t closed yet.
- Don’t move money around unless explicitly told to do so by your lender. Even putting MORE money in your bank account can cause delays and unnecessary stress.
- Don’t wander into open houses without your own agent because two bad things could happen. First, you could end up being unrepresented. The seller’s agent has a legal obligation to represent the best interests of the seller, which could include deceiving you or sharing information you give the agent with the seller, even if the seller’s agent is pretending to be working for you. Buyer’s representation costs you nothing and you should have your agent with you any time you view property. Secondly, you will inevitably wander into a property that’s out of your price range and fall in love with it. That makes it hard to decide on anything you can afford because you’ll compare it to the one you can’t afford.
It’s easy to get excited when you’re buying your first home and you should be excited. A little awareness goes a long way in protecting your interests in the long run. Happy hunting!