One of the most common mistakes is house hunting before establishing a clear budget or securing financing.
: Higher scores unlock lower interest rates, which can save you tens of thousands of dollars over the life of a 30-year loan. Avoid opening new credit lines or making large purchases before closing, as this can derail your final approval. 2. Account for "Ancillary" and Ongoing Costs 21 Unexpected or Hidden Costs of Buying a Home
: Lenders use this to determine how much you can borrow. Aim for a total monthly debt (including the new mortgage) that does not exceed 28–30% of your gross monthly income.
: A pre-approval is an official lender document based on verified financial data like W-2s and credit scores, giving you a competitive edge in bidding.
