Home Buying MistakesAccording to CNN Money some of the biggest home buying mistakes, include;
1. Not setting a budget. Your mortgage lender will let you know the maximum you can borrow. This does not mean that you should buy a home at the maximum approval level. Ask yourself ' how is this purchase price going to affect your overall monthly spending budget. 2. Picking the wrong mortgage. There are adjustable rate mortgages and fixed rate. Are you planning on only staying in your home for 3-5 years? If so, then a 3 or 5 year arm may be the best program. However, if you plan on staying in your home longer, then a fixed rate mortgage would provide more security. If you are a veteran look at VA Loans. Buying in the county? Check and see about USDA Loan. Look also into the benefits of FHA and Conventional Loans. 3. Choosing the wrong community. If you have or are planning children research the schools that they would be zoned to go to. Check out the overall test scores for those schools. If you do not, then you may be stuck with the unplanned expense of paying for private schools. Check around and see what the major issues are in the community. 4. Buying the most expensive home on the block. Although the home may be all you wanted in a home. If you buy a $500,000 home that is surrounded by $200,000 bungalows for example, it could dampen your home value. It is usually best to steer clear of homes that cost 50% more than neighboring homes. 5. Did not do a home inspection. It is a major mistake made by many home buyers. No matter how nice the home may look, make a home inspection a contingency to buying a home. It is a minor cost that could uncover major expensive to fix problems with the home. Choose your own do not let the realtor pick the inspector. American Society of Home Inspectors Additional Home Buying Mistakes: 6. Doing it alone. Home buying is a complex transaction. It is best to enlist the help of an experienced mortgage professional and buyer's realtor. 7. Not getting pre-qualified and pre-approved. It is best to have a general idea of how much you can afford to borrow. Being pre-approved means a lender has verified your credit qualification and ability to pay and has agreed to lend you up to a specific amount of money. Seller's will not take you seriously as a buyer unless you have taken this step. 8. Relying on verbal agreements. It is always best to get it in writing. If the home seller has verbally said that they will leave the appliances in the house for you, get it in writing. Written agreements almost always hold up in court more than oral ones when it comes to contracts. 9. Making an unconditional offer. Protect yourself with contingencies in your offer. Make a satisfactory inspection a contingency to your buying the home. Walk through with a home inspector and see what concerns they may have about the condition of the home. Make a satisfactory appraisal value a contingency to buying the home. Make the ability to get hazard insurance a contingency to buying the home. |