Eight Blunders To Avoid When Buying A Home
July 25, 2018
Buying a home is overwhelming for most first-time buyers. It’s the biggest purchase most people will make in their lives, and the process is like no other financial transaction.
Because of their unfamiliarity, first-time buyers often sabotage their home searches by making easily avoidable mistakes along the way. With the help of real estate agents, lenders and title insurers who have worked extensively with first-time buyers, we have collected a list of typical blunders. Avoid them and you will be well on your way to a smooth home-buying experience.
Waving the inspection
While you should never purchase a house without a home inspection, you could consider talking to the seller about a pre-inspection.
Failing to get pre-approved
Know the difference between prequalified and preapproved. Prequalified is an informal conversation with a lender. Preapproved is a formal process that involves an application, lots of documentation, and an extensive check of your financial background and credit.
Spending more on a house than you can afford
Just because one could borrow up to a certain amount, does not mean one should borrow that amount.
Neglecting to consider additional expenses
Besides your monthly mortgage payment, you’ll need to budget for property taxes, insurance, maintenance and utility bills.
Using the seller’s agent
Remember that the listing agent’s job is to negotiate the best possible price and terms for the seller. It is also unwise to think you do not need an agent. All buyers should realize they can get emotional when they are trying to negotiate their own purchase.
Letting emotions influence your decisions
Feelings about a home can blind buyers, causing them to overpay. Perhaps they fell in love with a house that is out of their budget, or they got caught up in the heat of a bidding war. Or conversely, they are so exhausted and discouraged by the process that they settle for something that isn’t right for them.
Going with the fist lender or agent you find
Often buyers don’t realize that there can be significant differences in costs as well as service. They should check online reviews and obtain written quotes to compare.
Making a big purchase or switching jobs before loan closes
Lenders pull credit reports just before settlement to make sure a borrower’s financial situation hasn’t changed. A big purchase can jeopardize your closing.
Source Credit:
Kathy Orton
January 23, 2018