Common Home Buyer Mistakes
Common Mistakes Home Buyers Tend to Make
Buying a new home is a very important moment. The passing of the keys after you’ve signed the last remaining papers can feel quite exhilarating. However, this dream can soon become a nightmare situation for homeowners if they aren’t careful. Although we specialize in buying homes for cash, we’d like to share some important home buying resources with our readers.
Here are just a few common mistakes that homebuyers should try to avoid making.
Not Setting a Budget
This is one of those mistakes that many first-time homebuyers make, and it’s one of the quickest ways to find yourself in trouble. People can find themselves falling in love with a particular listing, not realizing that just qualifying for the mortgage does not mean you’ll be able to afford the place. You need to set a realistic budget and stick with it, otherwise you’re family could run into a whole host of problems.
Not Getting Pre-approved
Before you’ve even begun looking at homes, you should have a firm grasp on your credit score and purchasing power. Don’t overlook going in to get approved from a qualified lender. First-time homebuyers can get their credit check and provide copies of their bank statements, W-2s and any other pertinent documents. This whole process will help buyers save precious time by helping them narrow down their search to only the houses they can actually afford. It will also give them an advantage over other bidders who weren’t pre approved.
Not Getting to Know the Neighborhood
You really can’t expect to know what a neighborhood is going to be like after spending one or two afternoons there visiting the property. Try and schedule different times in the day and week that you can visit the area. You want to be sure that you get a good vibe, especially from those who’ll be your closest neighbors. Also take note of the general state of the yards and other common areas throughout the neighborhood.
(Consider asking your real estate agent whether there is a homeowner’s association for the neighborhood as well.)
Forgoing a Home Inspection
This could be a very costly mistake to make. Home inspections are an essential aspect of any home buying process, but there are the occasional homebuyers that will overlook the need. A good home inspector will charge between $300-$600 for the inspection. They’ll run through a checklist with you that usually includes a check of the AC and heating units, as well as the home’s electrical setup and plumbing. Click here for so more tips on how to hire the best home inspector in your area.
Overlooking the Closing Costs
Home buyers need to know that they’ll be paying most of the closing costs when they decide to purchase a home. These costs can range between 2 to 5 percent of the home’s total price. Buyers can get a specific estimate of the closing costs from a mortgage lender. Closing costs usually include:
- Escrow fees
- Origination (points) on a loan
- Legal fees
- Title and homeowners insurance
- Notary fees
- Property taxes
Lastly, homebuyers need to think long-term when it comes to this decision. Not only because buying a home is usually a long-term commitment, but also because there’s a pretty good chance you’ll be moving again someday. Not taking this into account could land you in some hot water down the road.