What Should You Avoid While Buying a Home?

The short answer: While you're buying, avoid anything that changes your finances before closing: new debt, big purchases, unexplained deposits, a job change or missed payments. During your contract, avoid skipping homework that's easy to put off: inspections, insurance quotes, HOA and metro district documents, and, in Black Forest and rural Monument, the well and septic. Most problems that derail a purchase come from one of those two places.

By Brennan Wolff, Broker, Realtor®

There's no shortage of advice on what to do when you buy a home. What not to do gets less attention, but it's just as important. Most of the deals I've seen run into trouble didn't fall apart because of the house. They fell apart because of something that happened along the way. Here's what to avoid.

What should you avoid with your finances?

Your loan approval is based on a snapshot of your finances. Anything that changes that picture before closing can delay your loan or put it at risk. Until you have the keys:

• Don't take on new debt. That includes a car loan, a new credit card or financing furniture and appliances for the new house.
• Don't make large purchases, even with cash. Lenders look at what you have in reserve.
• Don't move money around without a paper trail. Large or unexplained deposits will need documentation. If family is helping with your down payment, your lender will likely need a gift letter.
• Don't change jobs or start a business if you can avoid it. Lenders want to see stable income.
• Don't miss a payment on anything. Even one late payment can affect your credit and your rate.
• Don't co-sign for someone else. Their debt can count as yours.

When in doubt, call your lender before you do it.

What should you avoid before you start looking?

• Shopping before you're pre-approved. A pre-approval tells you what you can borrow and makes your offers stronger.
• Stretching to the top of your approval. What a lender approves and what you're comfortable paying aren't the same. Include taxes, insurance, HOA dues and upkeep in your budget.
• Walking into a builder's model alone. Most builders require your agent to be with you, or registered, on your first visit. If you go in alone, you may not be able to bring your agent in later.

What should you avoid during your inspection period?

This is where buyers on the north end most often leave themselves exposed.

• Skipping inspections to look competitive. A general inspection, radon test and, for city homes, a sewer scope are worth it. El Paso County sits in the EPA's highest radon zone.
• Assuming the well and septic are fine. In Black Forest and rural Monument, test the well water and flow, review the well permit and have the septic pumped and inspected.
• Waiting on insurance quotes. Get quotes in the first few days. Hail and wildfire risk can affect both cost and availability. My post on wildfire risk and insurance explains why.
• Not reading the documents. HOA rules, covenants and metro district taxes can affect what you can do with the property and what it costs each year.
• Ignoring your deadlines. Colorado contracts set specific dates for each step. Missing one can cost you your options.

What else do buyers here overlook?

• Not checking school assignments for the specific address, if schools matter to you. Boundaries don't always follow neighborhood lines.
• Not driving the commute in bad weather. Monument Hill and Black Forest roads behave differently in a snowstorm than on a sunny afternoon.
• Not asking who plows the road. Many rural roads are private or maintained by a road association.
• Getting too attached too early. Go in with real interest but some distance. If the inspection or appraisal turns up something serious, you'll want to make a clear decision.

Frequently asked questions

Can I buy furniture before closing on a house? It's best to wait. New financing or large purchases can affect your loan approval before closing.

Should I change jobs while buying a house? Avoid it if you can. If you can't, tell your lender right away.

Is it OK to skip a home inspection? It's risky, especially here, where radon, hail-worn roofs and, on rural homes, wells and septic systems are common concerns.

When should I get homeowners insurance quotes? In the first few days of your inspection period, not the week before closing.

Buying soon?

I'm happy to walk you through the process, help you avoid the common traps and keep your deadlines on track. Start with the Buyer's Guide, learn about buying with us, or reach out to me directly. This post shares general information, not financial or legal advice. Talk with your lender about your specific loan.