Purchasing a new sanctuary or building should be an exciting and empowering experience for any church. The ability to purchase a new building represents growth and is a direct manifestation of all the hard work and prayers.

Unfortunately, in all the excitement, too many churches make critical mistakes in the purchasing process resulting in unsuccessful or very difficult transactions. To ensure a smooth transition into a new sanctuary or building avoid these all to common mistakes:

Mistake #1 - Failure to plan. Purchasing a building requires lots of planning. There are several logistical, and financial considerations that need to be covered. Several questions have to be answered - What area? What type of building? How much to spend? When is the right time to purchase? Does the facility and area allow for growth? Does purchasing fit into the overall plan of the church? Who is responsible for coordinating these efforts? Is leadership all on one accord with purchasing? How will we fund a purchase?

By not planning, often churches will find themselves in undesirable situations, like purchasing a building that they subsequently find out is useless to them because it is not zoned for religious activities.

Mistake #2 -Failure to get pre-qualified. Many church leaders will enter into a contract to purchase a building without getting pre-qualified for a loan. Essentially, making a commitment to buy without knowing if you have the ability to do so. This creates an uncomfortable predicament for the churches that subsequently find out that they cannot qualify for the loan that they are seeking.

To prevent such a situation, always, get an understanding of your church's financial position first, before looking for a property. Start by following these steps:

1. Review the budget to see what the church can afford - factor in the new mortgage payment, and other expenses like utilities, insurance, and general maintenance.

2. Decide on a down payment. Try to retain at least 90 days worth of liquid assets in reserves after the purchase. The last thing that you want to do is completely wipe out the church savings.

3. Determine how much the church can borrow. Use this general formula to calculate the loan amount - "gross annual income x 3.5 = potential loan amount." Lenders will typically lend 3 -4 times the amount of what the church brings in, annually.

4. Contact a church lender or broker to review your plans to purchase. They will verify the amount that the church can borrow and help the church prepare for the transaction.

Mistake #3 - Failure to be patient. It seems like once the decision to purchase has been made that the church leadership makes a mad dash to the finish line. There is a big rush and a sense of urgency to buy a building. Many shop for buildings, enter into contracts and ask questions later. Often churches will lock themselves into tight deadlines that create a lot of stress in the purchasing process.

Purchasing a new building is a very detailed process that involves many steps. Take the time to make solid and sound decisions. Be selective in the building and location, to make sure that is everything that you want.

Avoid these mistakes when leading your congregation through the process of purchasing a new building. Try to take as much time as needed to work through the process in an orderly manner. This will improve your chances of have a smooth and problem free purchase.