Buying a home can be a tricky process, don’t make these mistakes.
Not Doing Thorough Preparation or Research
Understand your financial situation and determine if you can afford a monthly house payment. Understanding your finances will help in finding a home within your price range and that won’t lead to bankruptcy. Also research the neighborhood you may be purchasing in and understand the costs of home ownership- this includes maintenance, insurance, taxes, repairs, etc.
Failing to Get Pre-Approved/Credit Check
It is a good idea to get pre-approved for a home loan for a number of reasons. First, it shows the price range of a home you are eligible to buy. This means you won’t start looking at a half million dollar house when, in reality, your income supports a quarter million dollar home. A pre-approval also shows seriousness to sellers and kick starts the buying process once you decide on your home.
Misunderstanding the Role of an Agent
Hire an agent that works for you. Agents primarily work for the sellers and have the interests of sellers in mind. By hiring an agent that works for and with you, you can make sure that your best interests are a priority.
Not Considering the Home’s Resale Value
When you are buying your home, thoughts of reselling it are unlikely to cross your mind. However, life situations can change things. Your family may grow, jobs may transfer unexpectedly and a million other reasons can come up. Buying a house without thinking of its potential resell value and the area it is in, can be unwise.
Skipping Home Inspections
Be sure to hire a professional to inspect your home. Do not trust those selling the home or their inspectors. Buy hiring your own, you insure you are making a good buy and won’t ending up paying thousands in repairs after you sign.
Falling in Love with a Home
Falling in love with a house during a home buying experience can blind buyers to its faults and true financial value. By vocalizing your love for a house, you indicate to the seller that you may be willing to pay more and you’ll get up charged. We all want to love the home we are buying but try to keep an open and logical mind. Look for faults and think to yourself if you could live with this (whether a cramped kitchen or no garage) for the next 15 to 30 years.