Home Buying Pitfalls
Posted On: Jan 03, 2017
Buying a home is likely to be one of the largest financial investments you will ever make, and the buying process can often be overwhelming and daunting.
Read on and make sure you don’t fall victim to one of these common mistakes home-buying mistakes. Remember, the more you know, the better prepared you will be to make a good decision.
1. NOT DOING YOUR RESEARCH
When doing research, consider EVERYTHING. If you are purchasing a home in a new neighborhood, be sure your research the school ratings, crime level, walkability, access to public transportation, and zoning laws. Talk to members of the community, and don’t be afraid to ask questions! Keep in mind what is important to you and your family, and weigh the pros and cons carefully.
2. CHOOSING THE WRONG MORTGAGE
Some sellers may not even consider your offer unless you have a pre-approval letter from a lender, and some realtors won’t even show you a home without it. Remember, there is a difference between pre-qualified and pre-approved.
Spend some time and research interest rates and a reputable lender to make sure you are getting the best deal available at the time.
3. GOING BEYOND YOUR BUDGET
After you spend time working your budget and determining a price point you are comfortable with, STICK TO IT. Don’t look at properties above your price point.
Do not let banks persuade you to agree to a mortgage with which you are not comfortable. Although you may not see an immediate impact, buying a home above your budget has the potential to derail your finances in the future.
4. FALLING IN LOVE
Although you should love the home you are buying, falling in love with one home – especially early on in the game – can blind you to its actual worth. Don’t overlook things like the home’s true value and resale value, and do NOT forgo an inspection just to move the process along faster. Speaking of…
5. NOT ORGANIZING A PROFESSIONAL BUILDING INSPECTION
We have talked about the importance of a home inspection before, but in case you forgot… do not skip the home inspection! You want to know exactly what you are getting and exactly what additional financial investments will be required to make your home perfect.