Buying Real Estate? Don’t Make These 9 Mistakes
Buying a home can be exciting, but there’s a lot to keep in mind if you’re looking for your first home. Make sure you don’t make any of these nine mistakes when you’re looking for the perfect home since all of these can lead to issues during the home buying process.
Overestimate Your Budget
Overestimating your budget means you’ll be looking at homes that are out of your price range once you do sit down and see what you can afford. Instead, get pre-qualified for a mortgage so you’ll know what price range you can afford.
Focus on the Small Things
Though you might have a wish-list, be careful of skipping over homes that don’t have everything you might want. It’s nearly impossible to find the perfect home, so make sure you’re flexible when you’re looking at potential homes.
Skip the Inspection
It’s easy to see the inspection as just another expense, but this is one crucial expense. The inspector will look for any issues with the home, including major issues like roofing damage that you might not have been able to see or missed when you walked through the home.
Fail to See the Potential
Many homeowners will say they don’t like a home because of the cabinets in the kitchen, because of the bathroom layout, or other details about the home. While you may not want to start major remodelling projects once you close, make sure you are aware of the potential inside the home.
Miss Out on Opportunities
Don’t miss out on any opportunities when you’re looking for homes to buy. Companies that say we buy houses fast for cash may have deals you’ll want to look into. Other companies that purchase homes may have homes for sale at a discounted price so you can get a better home without increasing your budget.
Apply for New Credit
Though you’re pre-approved for a mortgage, don’t get a new loan or credit card before closing. Don’t make any large purchases, either. Lenders will check your credit again before closing and new credit or less credit available can impact how much you can borrow or your interest rate.
Make Emotional Decisions
It’s easy to fall in love with a home that seems like it has everything. However, make sure you’re willing to walk away if the inspection reveals a major issue with the home. Even though the rest of the home may be perfect, you won’t want to be required to tackle foundation issues right after you buy the home.
Fail to Anticipate All Expenses
Buying a home is expensive, and the purchase price is only part of the expense. You’ll need to consider closing costs, hiring an inspector, and all of the other small expenses that will add up when you’re looking for a home. Make sure you have cash on hand to cover all of these expenses.
Forgetting the Future
Don’t forget to look to the future when considering different homes in your area. Think about what the neighborhood is like now, what it’s likely going to be in the near future, what your plans are for the future, and anything else that might impact your decision before you decide to buy.
If you’re planning on buying a home, pay attention to the mistakes listed here so you won’t make them while you’re searching for the perfect home. This can help your home buying experience go smoothly and help you find the right home faster.
