Buying a home is exciting, but the process can also be confusing, especially your first time around. The more you know, the more likely you’ll purchase a home that suits your needs and budget. Learning from others’ mistakes is easier than making your own, so take a look at these common home-buying mistakes to avoid.
Home-Buying Mistakes: Not Using a Real Estate Agent
As a buyer, you can hire a real estate agent to help you for free. The seller typically pays the agent’s fees at closing. Real estate agents will work to find suitable properties, negotiate with the seller, and guide you through the paperwork required when buying a home.
Only Applying at One Bank
Before looking at homes, apply for mortgage pre-approval. A pre-approval letter assures sellers that you have the finances to back up your offer. Don’t just apply at one bank, though. Different banks and mortgage lenders offer different interest rates. Apply with at least three banks to see which one gives you the best offer.
Skipping the Home Inspection is a Mistake When Buying a Home
Never skip the inspection. It is a vital part of understanding the house you are purchasing. An inspection will reveal current or potential problems with the home. Understanding the property’s condition is necessary to determine its value and how much you’re willing to pay. If you waive the inspection, you may unknowingly buy a home with roof or foundation damage that costs thousands to fix.
You can write every offer you make to a seller to be contingent on a home inspection. A contingency allows you to back out of the sale if the inspection turns up significant problems or structural damage.
Home-Buying Mistakes: Spending Too Much
Work with your real estate agent and lender to set a reasonable budget. Then, stick to it. Sometimes buyers overpay because they fell in love with a particular home and cannot let it go. Instead of getting attached to one property, shop around. A better home that fits your budget will eventually become available.
Not Researching the Neighborhood
One of the most common home-buying mistakes is failing to research the neighborhood. Buyers get focused on the home itself and forget to look around. If you’re not happy with the community, you won’t be pleased with your investment. Ensure the area offers the amenities you want, a pleasant aesthetic, and is within a reasonable distance from work and other obligations.
Eager buyers sometimes make these home-buying mistakes. Buying a home may feel overwhelming at times, and it’s best to take your time and shop around. Order a home inspection, stick to your budget, and ask your real estate agent questions so they can help guide you through the process.