10 Home Buying Mistakes that can Cost You
on Monday, January 4th, 2010 at 4:31 pm by kristab1. Hanging on the fence for the market to improve or not buying at all. No one can see the future or where the market is going, so waiting for the BEST time to buy is pointless. If you’re financially ready to be a homeowner, it’s always a good time to buy for one reason or another.
2. Making an offer without a contingency. A “way out” is a smart move for home buying. If the home as an unfix-able problem, the appraisal comes in under the contract price, or you are denied financing, a contingency gives you the right to cancel the contract to purchase.
3. Not doing your homework. If you didn’t read the fine print or have your Realtor review all your paperwork with you, you may be in for an unexpected surprise at closing. Request a copy of the most crucial documents ahead of time and review them with your Realtor or Closing Attorney.
4. Not getting a home inspection. Even if you love everything about the home and you “see” nothing wrong. It’s a big mistake to presume that it’s trouble free. All homes have shortcomings, even new construction, so getting a professional inspection is key.
5. Falling in love with the first house. If you don’t preview several houses, you could miss out on a good deal or regret your purchase down the road.
6. Buying more than your budget can handle. A lender can tell you that you can afford a certain amount. But do they really know your other financial responsibilities. Only you do. As a rule of thumb, your mortgage payment should be less than 28% of your gross monthly income.
7. Buying an investment property or renovation project before looking into the costs. Don’t be fooled by the “deal” and remember that repairs can be an aggravation and expensive.
8. Not exploring the neighborhood. It may be your dream home but not your dream neighborhood. It should be a good fit for your way of life such as work commute, amenities, school districts, etc. A nice neighborhood will increase your home’s value, while a not so nice one will bring it down.
9. Not thinking long-term. It should feel like home to you and your family. Never forget that this is a large investment, it pays to think of resale in the future.
10. Not getting pre-approved by a lender. Know what price range you should be looking in. Not only does this let you know how much house you can afford, it lets sellers know that you’re serious and qualified.
