Buying a home is not something people do on a regular basis. There are many things to consider while looking for properties, negotiating a sales contract and purchasing a home. Many homebuyers make simple mistakes that can end up costing lots of time and money. Avoid these 8 homebuying mistakes and find yourself walking in your dream home in no time.
Having a trustworthy and experienced realtor by your side throughout the home buying process is invaluable. Do thorough research before committing to working with a particular realtor. Ask for references from prospective realtor and speak with previous clients about their experiences. Make sure your realtor is active in the price range you are buying.
Many homebuyers want to move into a home that is turnkey. They don’t want to be bothered with any sort of home upgrades. However, putting a little bit of work into your home can increase your equity and make the home suited to your taste. Overlook items like outdated window treatments and light fixtures. Don’t be afraid of painting or taking down wallpaper. These are all inexpensive fixes. You’ll save money by doing it yourself after purchasing. You can also avoid a bidding war by buying a property that has a great floor plan and structure, but just doesn’t show well.
Many homebuyers see potential homes through rose colored glasses. They fail to notice big problems like water stains or foundation issues. Be proactive in looking for serious issues in a home. Don’t waste your time and enter in a contract on a home that needs repairs that are deal breakers. Always include a home inspection contingency in your sales offer. Be sure to attend the home inspection and thoroughly read over the inspection report to assure you haven’t missed any big issues.
The new generation of first time homebuyers are saddled with a lot of debt. They have large payments to make on student loans and automobiles. Many people focus on buying a nice car before they consider buying a house. Financially this is not wise. It is great to have a reliable means of transportation, but don’t saddle yourself with a large car payment before you buy a house. This will keep you from saving for homeownership and it will lower the amount of mortgage you’ll be pre-approved for.
Mortgages are not uniform across financial institutions. Each lender can offer different rates and fees associated with the same type of loan. Do you research before deciding which lender you want to work with. Make sure they have competitive rates and products, but also good service.
The most commonly used mortgage is a 30 year fixed mortgage. However, it is not the only mortgage option available. Consider mortgages like an adjustable rate mortgage, a 15 year fixed mortgage or a FHA 203k loan. Speak with your mortgage loan officer about your financial situation to help determine what type of mortgage will best suit your needs.
It is hard to leave your emotions out of house hunting. Most people look at a house and envision all of the memories that will be created there. While it is nice to dream while looking at homes, you need to keep logic throughout the process. Becoming too emotional will keep you from making clear decisions. You may end up paying too much for a home or neglect to see issues with the home by letting your emotions cloud your mind.
The biggest homebuying mistakes make is going house hunting before getting pre-approved. Your mortgage pre-approval allows you to know how much of a mortgage you can afford. It will prevent you from looking at homes outside of your price range. Many realtors won’t even start showing homes until a homeowner has shown a pre-approval letter.
The house hunting process can go smoothly. Avoid the homebuying mistakes listed above and you’ll find yourself in a home you lose without any hassle.