Homebuilding Insights

Congratulations…you’re ready to buy a new home! It’s an exciting time, and we know that you want to start the process as soon as possible. However, it’s important to take a deep breath and review this list of the ten most common money mistakes home buyers make, so that you don’t find yourself in a tight spot later. Before you start shopping for new homes, make sure you understand how to protect your budget.

1. Not checking your own credit.
   It’s surprising how many prospective home buyers neglect to check their credit rating with the three major credit reporting agencies – Transunion, Experian and Equifax. If you don’t have a good idea of where you stand when you’re ready to begin, there’s a chance your dream will come to an abrupt end sooner rather than later. The lower your credit score, the harder it will be to secure a mortgage.
2. Adding to your credit burden.
   While you’re in the process of buying a home, it’s important that you avoid making large purchases or opening new credit accounts. Excessive debt can be just as bad as a spotty payment record or a lack of credit history.
3. Failing to get pre-approved.
   When a potential seller sees that you’ve been pre-approved, it’s money in the bank. They know you’re serious about purchasing a home and are ready to buy when you find the right place. If a seller has two prospective buyers lined up – one pre-approved and one not – they’ll go with the pre-approved buyer every time.
4. Neglecting some of the related costs of owning a home.
   Make sure you factor in property taxes, insurance, planned and unexpected maintenance, and other related costs into the monthly payment for your new home.
5. Falling into the adjustable mortgage trap.
   When most buyers budget, they aren’t expecting a lot of variation in their interest rate. However, if you opt for an adjustable mortgage, the amount of interest you pay will fluctuate based on market conditions. For buyers on a tight budget, these adjustments could cause serious financial problems.
6. Not locking in your rate.
   When you sign your mortgage papers, most lenders will offer to “guarantee” your rate for a period of time – usually a few weeks to a few months. If you don’t lock in your rate at the time of purchase, be prepared for potential surprises.
7. Overestimating what you can afford.
   There’s more to life than where you live. Make sure you leave enough money in your budget for groceries, utilities, monthly bills, entertainment, and savings. If your mortgage stretches you too thin, the home will become a burden rather than a joy.
8. Having a short “paper trail”.
   Lenders look for consistent payment behavior over time. If you only have a few months of credit history, you may pay higher rates—if you’re able to qualify at all. Most lenders prefer at least 12–24 months of history before approving a loan.
9. Job hopping.
   Your employment record plays a major role in mortgage qualification. Lenders want to see stability, reliability, and a consistent income pattern.
10. Not taking the time to comparison shop.
    Just like buying a car or furniture, it pays to explore your options. Research different mortgage products, compare lenders, and look at multiple homes before making a decision. There is no “one size fits all” approach to buying a home.

If you're preparing for a new home purchase in Coastal Georgia, be sure to explore our new home communities or reach out to our Sales Team for guidance.