1) Start Shopping Before Getting Pre-Approved

Without knowing how much house you can afford, you might be wasting valuable time and missing out on great opportunities in your price point. You could end up looking at houses that you can't afford. The pre-approval letter is becoming a standard practice for sellers to consider a buyer to be qualified and serious.

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2) Only Obtaining One Quote

Shopping for a mortgage is like shopping for a car. It pays to compare offers. Mortgage interest rates vary from lender to
lender, and so do fees for closing costs and discount points. Per Credit Bureau, “All mortgage applications made within a 45-day window will count as just one credit inquiry.”

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3) Not Checking Your Credit Report Ahead of Time

Mortgage lenders will examine your credit reports when deciding whether to approve a loan and at what interest rate. If your credit report contains errors, you might get quoted an interest rate
that's higher than you deserve. That's why it pays to make sure your credit report is accurate.

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4) Not looking into First-Time Home Buyer or Other
Loan Programs  

There are other low-down-payment loan or state programs that offer down payment assistance and competitive mortgage rates for first-time home buyers. Check with your mortgage lender,
you might qualify for an FHA, VA, or USDA loan program.

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5) Regret Not Putting More Down Payment

A bigger down payment lets you get a smaller mortgage, giving you more affordable monthly payments. The key is making sure your down payment helps you secure a payment you’re comfortable making each month. I would strongly advise you
to discuss with your lender for best suitable option for you.

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6) Not Knowing Whether to Pay Discount Points

Mortgage discount points are fees you pay upfront to reduce
your mortgage interest rate. Interest rate savings can add up to
a lot of money over the life of a mortgage, and discount points
are one way to gain those rate savings if you’re in the right position to purchase them.

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7) Drain Your Savings

If you buy a previously owned home, unexpected repairs is unavoidable. Save aside extra money in case if things come up. Even if you have homeowner's insurance, you might have deductible to cover.

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8) Applying for Credit Before Closing

The period between is critical: You want to leave your credit alone as much as possible. It’s a mistake to get a new credit card, buy furniture or appliances on credit, or take out an auto loan before the mortgage closes. Wait until after closing to open a
new credit card or make large purchases.

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9) ​Underestimating the Costs of Homeownership

Be prepared for other utility, tax, insurance bills on top on the mortgage payment. Find out the the neighborhood’s property taxes and insurance typically cost. Ask to see the seller’s utility
bills for the last 12 months the home was occupied so you have
an idea how much they will cost after you move in.

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10) Miscalculate Renovation Costs

Home buyers are frequently surprised by high repair and renovation costs. Not getting enough estimates upfront maybe
a huge mistake. Secondly, TV shows perceive renovations to look much easier, faster and affordable than they are in reality. It is recommended to pad an extra 50% of quoted budget and estimated time to complete the project.

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