Overlooking pre-approved loan: Buying a home is different from buying a piece of furniture or even a car. A first-time buyer should first find out his bank borrowing eligibility before he sets about scouting for a home. After securing a pre-approved loan, he/she look for homes within the approved mortgage limit. No point finalizing a home before ensuring the pre-approved loan as it could be beyond your reach in the first place.
Treating pre-qualified loan as pre-approved loan: Many buyers wrongly assume that pre-qualified and pre-approved loans are interchangeably used terms. Pre-qualified loans are calculated by banks based on a rough analysis of your financials. This loan amount might increase or decrease eventually following a detailed evaluation of your net worth, and, thus, cannot be relied upon while finalizing a home. On the contrary, pre-approved loan is a more precise and reliable figure.
Overlooking key life priorities: First-time buyers often overstretch themselves to buy their dream homes at any cost. Consequently, they are left with nothing towards fulfilling other key life goals such as children's education or their retirement. Buyers should set their mortgage limit without compromising other important goals in life.
Overlooking the obvious: Whether you are buying a brand new property or an old house, never skip the need to ensure its structural solidity. You might end up paying a huge sum in repairing a damaged bathroom floor that you failed to notice while buying the property. Double-check every nook and corner to ensure that you do not inherit structural problems that may cost you big money at a later date.