Purchasing your new home is a major decision that you must plan carefully. However, new home buyers are bound to make some mistakes. Here are the top mistakes people make when looking to buy a home.
1. Not Engaging a Mortgage Broker
Wondering why you should work with a mortgage broker?
If you are not paying for the property in cash, and need help with financing, mortgage brokers are experts in this field, and they are knowledgeable about all of the lending rules and regulations. They can also save you time and effort by doing the paperwork for you. They can also help you shop for the mortgage options available. If you decide to work with a mortgage broker, you want to make sure that they are licensed.
For many people, the process of buying a home is stressful and can feel like it’s out of their control. You want to make sure that you are doing everything possible to make it as easy as possible on yourself and your family.
2. Ignoring The Complete Cost Of Home Ownership
You are undoubtedly used to the monthly expenses of renting as a first-time home buyer, which typically includes your rent payment, certain utilities, and your internet and cable fees. You will be liable as a homeowner for additional monthly expenses that your landlord may have paid. In addition to the down payment, some of these expenditures include mortgage insurance, closing costs (often 3% to 4% of the home’s price), title insurance, home inspection, appraisal fees, and relocation costs. That also includes expenses like monthly HOA dues, sewer and garbage bills, and grass maintenance costs.
3. Not Shopping For Mortgages
Many people who are looking to buy a home choose a lender based solely on the recommendation of a friend, relative, or real estate professional. Remember that not all traditional or alternative mortgages are created equal. You may locate the finest deal for you and your home needs by shopping around. Consider it similar to purchasing a car, where everything is subject to negotiation and you must act in your best interests.
Even though it is not necessary, the majority of home buyers ultimately obtain a home mortgage from the lender who pre-approved them. Consequently, it is wise to start your research with lenders at the pre-approval stage. A broker can help you choose the best traditional or private mortgage lenders.
4. Ignoring The Neighborhood
A building’s location encompasses more than just its shops and eateries. It is best to consider the resources you currently have in comparison to what you would like to have in the future.
Let’s say, for instance, that you have children or intend to have them. In that scenario, you should consider the general standard of the educational system as well as the nearby recreational amenities, such as playgrounds, parks, and bus stations. If convenience is important to you, consider whether the property is conveniently located close to a place of employment, a police station, a hospital, and other local amenities.
5. Making an Offer Without The Proper Conditions
Conditions safeguard you so that you do not commit to buying a home before you are certain that you have secured financing and scheduled a home inspection. Additionally, they save you from moving day and discovering that the appliances were not included in the purchase price.
Make sure your terms are reasonable and fair and base them on the property you are interested in. If you include too many absurd conditions to your offer, the seller can reject it.
Your real estate agent can help you decide which conditions to add in your offer, but the following are the most typical ones:
- Home examination