Buying a home is exciting but it’s easy to get swept away so gain the knowledge you need to increase your chances of success!
The process of buying a home is nothing like most purchases consumers make. Unfortunately, inexperience and lack of knowledge lead most homeowners to make mistakes that inevitably lead to heartbreak and serious financial difficulties. Here are a few of the common mistakes that many homebuyers make during the process.
8 Common Mistakes Homebuyers Make that You Should Avoid
1. Shopping for a Home Before Seeking a Mortgage
Many Realtors and Sellers of homes will not take you seriously if you are not Pre-Approved for a mortgage. The last thing you want to do is start shopping for your dream home only to realize you don't qualify for it. So click on the "Speak to A Loan Agen" link on our home page (www.KnowMortgage.com) to get connected and find out how much you can get Pre-Approved for.
2. Investing in Other Large Purchases
Your credit score takes a hit when you open a new line of credit or take on debt. These additional purchases could impact your pre-approval and mortgage rate, potentially making you ineligible for homes you could otherwise afford.
3. Getting Stuck on Superficial Details
Fresh new paint and lush carpets look great, but a facelift can distract you from the most important details of your new home. However, a leaky roof, damaged foundation, or ancient plumbing system can mean major repair costs in your near future. Probe the realtors involved and find out what potential problems may be associated with the home.
4. Not Seeking Professional Help
An experienced real estate agent can help you figure out the homes you can afford and offer you access to the latest listings. They can also help you beat competing buyers searching online and negotiate a reasonable price. Also it may not be a bad idea to reach out to a local home inspector and get advice on what to look out for.
5. Skipping a Home Inspection
Skipping a home inspection is one of the biggest mistakes you can make when buying a home. In fact, the money you spend on a home inspection could save you thousands of dollars in the future. The inspection covers all structural, electrical, plumbing, and heating and cooling components of the home. The results give you the opportunity to walk away from a potential disaster or negotiate for a lower price. On the other hand, if everything checks out, it’s hard to put a price on peace of mind.
6. Only Looking at One Mortgage Lender’s Rates
You probably have plenty of friends and family members willing to offer advice about which lender is best. However, not taking the time to shop around could cost you thousands of dollars. When seeking a mortgage, compare at least 3 lenders to understand your options regarding rates, lender fees, and loan terms.
7. Overlooking VA, FHA, and USDA Home Loans
Certain loans are designed to give consumers a break with various extra benefits. Using one of these loans could drastically change your down payment amount, your monthly mortgage rate, and even the full amount you pay for your home. Government-insured loan programs help lower-income families afford homes in rural areas. If you don’t have a big down payment or perfect credit, you might still be able to buy a home with one of these loans.
8. Underestimating the Total Cost involved
Many people start the home buying process and quite simply do not have enough funds saved up or set aside for everything that will be involved. We recommend that you have a conversation with both your Lender and Realtor to discuss how much you will need to have available to make your home purchase dreams a reality.
How to Prepare for Buying a Home: A Step by Step Guide
Preparing to buy your first home is a process that begins long before you sign on the dotted line. As a matter of fact, you’re actually beginning the process when you begin paying bills. If you’re thinking of buying a home within the next few years, preparing the right way can help you secure the home of your dreams. Take these steps when planning a home purchase.
- Check your credit score.
- Create a budget and make responsible spending choices.
- Shop for a mortgage.
- Get a letter of pre-approval.
- Hire a real estate professional.
- View multiple homes.
- Make an offer
- Get a home inspection.
- Negotiate the price for repairs.
- Secure your mortgage.
- Close on your new home.
Buying a new home can and should be one of the most joyful times in your life. Arming yourself with knowledge and making the proper preparations can make the difference between happiness and heartbreak. Instead of closing your eyes and hoping for the best outcome on one of the most important purchases in your life, prepare yourself by visiting KnowMortgage.com. Also if you would like to get connected to a Lender and see what you may be qualified for just click on "Speak to A Loan Agent" from our home page.