We all mistakes, but when it comes to making mistakes when buying a home, they can be the amount to big problems. Take a look at the following mistakes below, and do your best to take heed to avoid making similar ones when you’re in the market for a new home.
Love at First Sight
Sure love at first sight may exist, but when it comes to buying a home, make sure you do your due diligence. Take your time to inspect the home to see if it meets all your needs and matches your requirements. Make a list of needs before you start the process, it’ll weed out the weaker candidates quicker and keep you on track. There are a ton of factors that make the right home right for you, so make sure you look outside the box. And be sure to look more than once! Don’t forget a complete professional home inspection.
Not Reading the Fine Print
Real estate contracts are complicated and contain a ton of important information. Make sure you read every single line, and if you’ve got any questions, ask! Don’t be afraid to ask a question, regardless of how simple or complex. A good agent should answer any and all questions you have. Remember, once you sign the deal is as good as closed. That said, be sure to get copies of everything for your records, and compile everything in a safe, organized place.
Don’t Take Their Word for It
When dealing with fast talking agents and complicated terms, you’ll probably be confused but assured that everything will work your way. But before you believe it, get it in writing and keep a copy. Sure, you may have been promised a certain interest rate or sales price, but until it’s documented it means very little. And it always comes down to giving up what you’ve been promised because it’s so late in the game that you just want the deal to close. Don’t give anyone that luxury. Also, do your homework on the property itself because agent’s usually just use details that favor the house, even if inaccurate.
Buying Too Much House
You may get caught up in the home buying process and find that a bigger, badder house is more your style. But keep in mind that you’ll need to make your mortgage payment each month, which can add up when you include taxes and insurance. And don’t forget all the closing costs involved with the loan and moving and furnishing costs. Before you set out to buy a home, check your debt-to-income ratio to see what you can afford?
Failing to Get Pre-Qualified
Before you set on your home buying journey, make sure you line up all your ducks. Talk to a bank or mortgage lender to see exactly how much you can afford, and overestimate the interest rate in case rates inch up during your search. Also make sure you order a credit report long before the process begins to ensure you’re in good standing. A bad credit score will lead to a bad interest rate, or no financing at all. You’ll feel pretty disappointed if you find your dream home and aren’t able to finance it…
Make sure you get tips and advice from friends and family who have already purchased a home. Also visit real estate websites and grab some books from the library to learn more about the process. The more you know, the more you’ll likely save, and the fewer mistakes you’ll make.
Don’t buy the most expensive home on the block, and don’t trust everyone you meet. Ask for references to ensure you’re dealing with a competent agent. And always add contingencies to the real estate contract to protect yourself in case anything goes awry.
All that said, mistakes are natural and will always happen, especially on your first home purchase. Take them in stride, and don’t stress out too much. After all, it’s just a house!