Home Buyer Mistakes in Real Estate
Buying a home can be a nightmare, at least if you’re a first time home buyer! In previous articles, we talked about some of the mistakes that rookie buyers make when buying their first house and hinted that there may be some more! Well, of course there are more! So strap yourselves in and get ready to continue riding the real estate roller coaster! Another great article compliments of Sundaybell!
Buying a home can be a nightmare, at least if you’re a first time home buyer! In previous articles, we talked about some of the mistakes that rookie buyers make when buying their first house and hinted that there may be some more! Well, of course there are more! So strap yourselves in and get ready to continue riding the real estate roller coaster!
1. Not Factoring In Additional Expenses
You’re looking at houses for sale with your real estate broker, settle on one and close the deal. You’ve planned your mortgage and are comfortable with the monthly payments. Done and dusted, right? Not quite. Buying a house or condo involves additional expenses that you didn’t have to consider when renting a house, such as property taxes, home insurance and home repairs – if the roof suddenly caves in, you can’t just call the landlord anymore! If it’s a condo you’re buying, then you have to consider the monthly maintenance fees on top of your monthly mortgage payments.
2. Neglecting To Do A Home Inspection
Your real estate agent shows you what might be the most gorgeous house that you’ve ever seen. Miraculously, not only is the price right but the negotiations go extremely well and you close the deal quickly and painlessly. The only thing you forgot to do was a home inspection prior to closing. Uh-oh. It’s only now that you find out about the dodgy foundation, the leaky plumbing and the draughty windows. Too many first time homebuyers forget, forgo or simply don’t think about doing a home inspection, leading to what could become catastrophic consequences later on.
3. Not Doing A Self-Credit Check
Why would you do a self-credit check, right? I mean, you make sure your bills are paid on time, keep up with all your financial obligations and anyway, isn’t that someone else’s job? The fact is your credit report may contain damaging errors that could either saddle you with a much higher than normal rate of interest or have your lender reject your mortgage application outright. One study in the U.S. found that up to 79% of credit reports contain some sort of wrong information while 25% contain serious errors. The good news is that you can contact the credit rating agencies and have those mistakes corrected. Do yourself a favor and take the time to do a self-credit check; it’ll be worth your while to do so.
4. Failing To Get Pre-Approved For Your Loan
One of the biggest mistakes you can make is concentrating only on finding your ideal property and thinking about the financing afterwards. If you don’t take the time to get pre-approved for a mortgage while still looking at homes for sale, you may find that after all your hard work, you won’t be approved for your mortgage. So, not only have you wasted everyone’s time, but you may also forfeit the thousands of dollars you put up when you signed the contract. Also, once you’ve been pre-approved and are looking at buying a house, don’t start buying other big-ticket items, like a car! This could endanger your mortgage even though you’ve been pre-approved; there’s no point in taking any unnecessary risks!
5. Not Taking Into Account Home Resale Value When Buying A Home
This is a mistake that happens quite often. When you’re buying a house, the thought of selling it probably hasn’t even entered your mind. But it should. More often than not someday this, your first home, will also be listed among those many thousands of homes for sale. Therefore, consider things like: will the property increase in value? Will you be able to sell it quickly? It’s always good to look at your property from a potential buyer’s perspective; this might mean getting a larger backyard than you wanted or more bathrooms than you needed. However, in the long run, these are the sorts of things that will play out to your advantage.
There are literally hundreds more and we’ve addressed only some of the more common mistakes that inexperienced buyers are prone to making when buying a home. However, when you take the time to educate yourself – both first time buyers and sellers – you can not only save a lot of money but also avoid a great deal of aggravation. And these are just some of the reason why Buyers and Sellers should join www.Sundaybell.com.
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