It’s exciting and nerve-wracking to buy a home. It’s probably the largest purchase of your life, and that means that you want it to go smoothly. Avoid these five home buying mistakes and have a better real estate purchase experience.
1. Not Knowing What You Can Afford
There is more to buying a home than the monthly mortgage payment. You need to calculate the entire cost of home ownership before agreeing to a purchase. Unfortunately, many people overestimate their ability to afford a home and end up buying above their budget.
In addition to considering the monthly mortgage payment, you need to consider property taxes and insurance. All of these can change or increase over the course of your property ownership, so do not buy a home that’s at the maximum that you can afford. You need breathing room for these to increase over time, and you still be able to afford them.
Additionally, factor in repair and maintenance costs. This included the yearly tasks that must be done and the sudden emergencies that you cannot predict. You don’t want to miss a monthly mortgage payment because you need to replace the HVAC unit or water heater.
2. Not Identifying Wants vs. Needs
It’s easy to get carried away when home shopping. You have a long list of things you want and have high hopes that you’ll find a home with everything you want. However, the reality is that most people must compromise on what they want when it comes to what their budget can afford. Then there is the challenge of finding a home that actually has everything. Making a want vs. need list can help you narrow your search and find a home with everything that will make you happy. For example, perhaps you need a home with a yard for your dog while you want a home with a pool for lounging. Or maybe you need a home with a two-car garage while you want a home with a kitchen island.
3. Not Considering the Community
Don’t get so focused on the house that you forget to take a look around. You need to enjoy the neighborhood and community where the house is located in. Otherwise, even the most perfect home in the world will be unpleasant to live in. If you have children, then a family-friendly neighborhood is ideal. A home near shopping, restaurants and entertainment is a must if you enjoy going out.
4. Not Seeking Expert Guidance
Home buying isn’t something that people typically do regularly. Because of this, they aren’t familiar with the language and terms that are contained in the contract for the sale of land. While it can seem tempting to do it on your own to save money, there are many potential expensive pitfalls. Working with a real estate agent and real estate attorney can give you additional guidance from people whose job is to work with real estate.
Having these resources at your disposal means you have someone you can ask questions of. They can review your contract to ensure it includes everything you want and that you don’t agree to something you don’t want.
5. Not Doing the Financial Prep Work
While you could start home shopping immediately, this isn’t always the best action for buyers. Instead, sit down and review your finances. A lender will look at everything, so having your finances in order makes the approval process easier. Check your credit score and report to fix corrections before you start applying for loans.
Once you have everything in order, seek pre-approval. Always shop around and request multiple quotes. This ensures you get a loan with the best terms. When you have pre-approval, you can move through the buying process faster, making your offer more enticing for the seller. There is a sense of security for the seller that you can follow through with the sale because you have already secured financing.
Avoid these Home Buying Mistakes
Knowing these five mistakes will help you avoid the common pitfalls that many home buyers make if you are ready to buy a home. Start by preparing your finances, knowing your budget, and managing your needs. Then you can work with real estate experts to find the right home in the perfect community.
Schedule a consultation today and speak with one of our experienced real estate attorneys.
