The real estate market can put pressure on every stage of the home‑buying journey—whether that’s a 24‑hour window to submit your best offer on a coveted bungalow, or the feeling that rates could tick up again tomorrow. But even under pressure, it’s critical not to take any shortcuts in the process.
As a neighborhood mortgage lender based in West Asheville, we’ve seen (and coached buyers through) every kind of hiccup in the Western North Carolina market. Below are ten missteps we see most often—and practical ways you can steer clear of them.
1. Skipping Pre‑Approval
Pre‑approval for a mortgage loan is more than a quick “yes” from an online calculator. It shows sellers—and their agents—that your financing has already been vetted by an underwriter, giving your offer extra weight. This can be especially important in a competitive bidding scenario.
As a local lender with a broad network of friends and neighbors in real estate, we often hear that sellers’ agents looked more favorably on an offer from a buyer who was pre-approved by a local, rather than a national, lending partner.
How to Avoid It:
Find a local lender and get the process going before you start looking at houses! To speed things up, you can:
- Gather recent pay stubs, W‑2s, bank statements, and ID up front.
- Call, click, or come in to see us! Our in‑house underwriting team can sometimes issue a letter in as little as one business day (time frames can vary).
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2. Overlooking Your Credit Reports
A 30‑point credit‑score drop can cost you thousands of dollars in interest over the life of a loan. Yet small errors—an old address, a paid‑off card that was never reported—can drag your score down.
How to Avoid It:
Optimize your score and make sure your credit reports are accurate with a few steps you can complete at home:
- Pull free online reports from all three credit bureaus (Experian, Transunion, and Equifax) several months before house‑hunting, and check them for errors.
- Dispute errors in writing; most bureaus respond within 30 days.
- Keep credit card balances below 30% of the limit while you shop (but don’t open any new cards—more on that under #5).
3. Ignoring Your Debt‑to‑Income (DTI) Ratio
Lenders compare your monthly debt payments to your gross income to gauge how comfortably you can take on a monthly mortgage payment. Many loan programs look for a DTI (debt-to-income) ratio of roughly 43 percent or lower, though some—such as USDA home loans—apply their own limits.
How to Avoid It:
- Pay down revolving balances or consider consolidating high‑interest debt.
- Hold off on financing a car or opening new credit lines until after closing on a house.
- If your DTI is close to the limit, we may recommend options like a larger down payment or a loan product with more flexible guidelines.
4. Changing Jobs Mid‑Process
A promotion is exciting, but switching employers while you’re under contract can stall or even derail approval. Underwriters will re‑verify employment just before closing; a change can require time-consuming work, such as new pay documentation, probationary‑period questions, or an updated loan application.
How to Avoid It:
- Whenever possible, delay job changes until after closing day on your new home.
- If an employment move is unavoidable, tell your loan officer immediately so we can document the transition and preserve your desired home-buying timeline.
5. Making Large Purchases
Financing a new sofa or putting a wedding on a credit card can shift both your credit score and DTI in an instant. Even paying cash lowers the financial reserves you disclosed on your loan application.
How to Avoid It:
- Keep existing accounts open and in good standing, but avoid running up balances.
- Resist the “no interest for 12 months” temptation until your house keys are in hand.
- If an emergency purchase seems unavoidable, call us first so we can advise on next steps.
“Zack was awesome, so available, and readily answered any questions or concerns. At closing our attorney kept saying how great our rate was and how low our closing costs were in comparison to other companies. Would 100% recommend to a friend ( and I already have!).”
—Michala P., 5-Star Google Review
6. Not Understanding Loan Types
A “home loan” comes in many different varieties—they are not all the same! North Carolina buyers have access to a wide menu of loan products: conventional, FHA, VA, USDA Rural Development, renovation loans such as FHA 203(k), and second‑home or investment‑property options. Each carries its own down‑payment rules, credit thresholds, and property guidelines.
How to Avoid It:
- Schedule a strategy session—by phone, online, or over coffee—to review scenarios side‑by‑side with our mortgage specialists.
- Ask about rate locks, mortgage‑insurance requirements, and long‑term costs—not just the monthly payment!
- If you plan to upgrade your home, explore a renovation loan that finances improvements into the mortgage.
7. Neglecting Down Payment Assistance
VA home loans for veterans offer no‑down‑payment pathways, as do USDA home loans for first-time homebuyers in rural areas. Local and state-level grants can sometimes layer on additional help for those who qualify,
How to Avoid It? Take advantage of Down Payment Assistance:
Researching down payment assistance that you qualify for may be daunting, but you don’t need to figure it out on your own! Reach out to us, and we’ll help you discover what assistance you can qualify for. We’ll package eligible assistance into your loan so it’s applied automatically at closing. Some tips:
- Ask early—some funds are first‑come, first‑served.
- Complete any home‑buyer education required for the loan before you sign a contract.
8. Underestimating Closing Costs
In North Carolina, buyers generally pay 1-3 percent of a home’s purchase price in closing costs. That covers the home value appraisal, lender fees, attorney’s fees (North Carolina is an attorney‑closing state), title insurance, homeowners insurance, prepaid taxes, and more.
How to Avoid It:
- Review your official Loan Estimate from GoPrime; on this document, we will outline every expected fee for you.
- Budget for a “buffer”—if you spend less, great, but surprises won’t break the deal.
- Work with your real estate agent to negotiate seller concessions if your closing cash is tight.
9. Skipping Home Inspections
A lender‑required appraisal confirms value; a professional inspection uncovers hidden issues like cracks in the foundation, dated wiring, or a roof at the end of its life. Repairs that cost a few hundred dollars to identify can run tens of thousands later.
How to Avoid It:
- Hire a licensed, trusted North Carolina inspector during your due diligence window (when you are “under contract” on your home).
- Add specialized checks such as radon, termite, well, and septic if the property warrants them. (Your real estate agent can often help you decide based on the area and the home.)
- Use findings of these reports to request repairs from the seller—or a price adjustment—before closing.
10. Failing to Communicate With Your Lender
From a missing bank statement to an unsigned disclosure, small documentation gaps can trigger delays in underwriting your home loan. Our team strives for a paperless, streamlined process—but we still need timely responses to keep things moving.
How to Avoid It:
- Use our mobile app, which is designed to keep things easy, well-documented, and paperless.
- Check your email daily for requests from the GoPrime team.
- Upload documents in PDF form to avoid clarity issues; let us know if you have any issues, and we can help at our office as needed!
- Reach out whenever you’re unsure—there are no silly questions in mortgage planning.
Ready to Get Pre‑Approved and Start House‑Hunting?
Whether you’re relocating to the Blue Ridge, purchasing an investment cabin, or buying your very first home, our solution‑oriented mortgage planners are here to help.
Call, click, or come in—we’re at 862 Haywood Rd, Asheville, NC 28806, in the heart of West Asheville. We’re also a quick tap away via our website, or reachable at (828) 348‑1907 during business hours!
