With the right real estate agent guiding you through the deal it can be smooth sailing. Make sure you avoid these costly mistakes when diving into the market to buy a home.
- Making an offer on a home without talking to a lender about you getting pre-qualified.
- Prospective buyers get excited about touring homes. In the excitement they jump past getting qualified. This is a mistake, because they can possibly fall in love with a home that is not in their budget or look at homes under their budget. Even worse, they work on the pre-qualification after finding the “perfect home” to find out they are to late and the home is under contract with another buyer. Take time and get pre-qualified!
- Opting out of a home inspection.
- Conducting a general home inspection is one of the most important steps of the home buying process after getting your contract accepted. Home inspections can help you determine if the home is in need of costly repairs: new roof, A/C is in need of servicing, foundation issues, and other mechanical parts to the home that get overlooked during the home tour.
- Thinking there is only one perfect house out there.
- I have worked a few deal where a client falls in love with a home and so did other prospective buyer resulting in multiple offers. If your offer does not get selected stay positive. Homes hit the market everyday, and there are many homes with different features that can fit your needs if you keep your mind and heart open to their possibilities of fitting your list of needs/wants in a home.
- Not budgeting for related home buying expenses.
- There is more to the cost of buying a home than the down payment. Consider the costs for lender origination fees that can cost about 1% of the loan. Further, there is the cost of the independent 3rd part appraisal that is subject to every loan (estimated cost $500). The loan docs are prepared and signed at the title company that also conducts a title history report to make sure the home has a property chain of title giving the next buyer proper ownership to the home. Those fees can range from a few hundred to over a thousand dollars.
- Opening new lines of credit during the home loan process.
- Buyers can sometimes get excited to purchase furniture on credit or open up new lines of credit before the loan on their home is closed and funded. There are many horror stories of buyers loosing their approval status for a loan because their new credit line adversely affected their credit rating.
Make sure you talk with a quality real estate profession who has the experience to explain the many moving parts of your home buying process. These points here are only a starting point to help you avoid the mishaps of buying a home. If you need help buying a home please contact me. Enjoy the video below.