Do’s & Don’ts When Shopping for a New Home

Shopping for your new home can be fun and at certain points it can seem like a lot of work. Setting aside hours on the weekend or after work to see a property can be a huge time investment. And trust me, it is something you should take very seriously and really consider a lot of different things when looking to buy. But once you find the perfect home, you want to make sure everything goes smoothly once your offer gets accepted. No ones ever wants to be told they don’t qualify or can’t afford the home. So, to make life a little bit easier, here are just a few things you really need to keep in mind when buying your next home!

1.Don’t let your emotions run the show

Yes house shopping can be fun, but don’t let HGTV set your expectations of what it’s going to be like. Be honest with yourself about what your priorities are for a home. Realize that certain factors like location, commute time, neighborhood, schools etc should be a priority over wall color. Keep in mind the things you can change and the things you can’t when considering your purchase!

2. Do Respect the budget

If you have any love for your finances, you will accept the fact that only about 20-30% of your monthly income should go towards. P.I.T.I. What is P.I.T.I you say? Principle, Interest, Taxes and Insurance – these can add up quickly if you don’t consider what your expected expenses will be. Ask your agent! They will be able to give you expected monthly costs. Have a budget in mind you would like to spend upfront before you go out house shopping.

3. Don’t make any large purchases

When you applying for a mortgage, you do not want any red flags going up because of any recent purchases. The mortgage company wants to make sure you can afford this house. Going out and buying a brand new $40,000 car could jeopardize your perceived financial stability! Wait until after you close before you consider that new car or bedroom furniture set.

4. Don’t make large cash withdraws

Again, this goes along with your financial stability. Large deposits or withdraws shows uncertain fluctuations and it can concerns over your bank records. Keep things as calm and consistent as possible to minimize any hiccups along the way.

5. Don’t NOT apply for more credit

If you ask for financing anywhere (car, furniture, credit cards, department store etc) this ultimately increases your debt value. Added debt will decrease the amount you can be approved for with a mortgage. Again, best thing to do is wait until after settlement.

6. Don’t co-sign a loan

Co-signing a loan still holds you liable for the loan amount. It may not be your loan, but your ability to obtain a mortgage will be negatively affected. Best thing to do is …wait until after you settle!



7. Do Keep Your Current Job

Last but certainly not least, DO NOT make a job change. Having financial stability (aka a steady stream of income) is crucial when applying for a loan. If you switch jobs or worse, leave your job, it raises concern because the mortgage company wants to make sure you will be able to pay for the mortgage.


So while home shopping can be a very exciting experience, there are a few things you need to keep in mind when looking around. You financial picture plays a huge role when it comes time to apply for a mortgage. Don’t jeopardize your ability to buy a home by sending your credit and finances into a tail spin. If your looking to buy a home in the Buck County area, give us a call! We would be happy to help you find a home (and help you avoid any of these mistakes)