Whether you are buying a house from a real estate investor on terms such as owner financing or you are buying a listed home from the market with your real estate agent, it is important that you get the home of your dreams at the lowest possible price.
As a home buyer, it is important to take a few things in mind that will ensure that you no longer get a roof over your head, but that you also get the deal of your life.
The following are common mistakes home buyers make that you need to avoid.
1) No doing an inspection
One of the most important things you can do before we buy houses is inspection. In most cases, inspection will reveal some problems you may not know existed, that would otherwise make the home not so appealing any more. In most cases, you can use the home inspection as a bargaining tool so you end up paying less for the home.
2) Not getting prequalified
Before you even start looking for a home, the first thing you should do is to make sure you can afford it. visit with a mortgage broker and get pre-qualified. They will ask for your income, expenses, debts, etc. they will also pull your credit and advise you if you qualify or not.
The mortgage broker will also tell you how much you should expect to pay in interest, monthly payments, etc. of course, they will advice you to stay within a certain price range when hunting for a house.
Armed with this information, home sellers will be keen to talk to you. If you are working with a real estate agent, most of them will need to see a pre-qualification before they can spend their doing home hunting for you.
3) Not knowing all the costs involved
The conversation with your seller, realtor and mortgage broker should reveal all the costs of buying your house. Lots of times, many home buyers are not aware of closing costs, and other costs involved in buying your home.
You should also know the costs involved in keeping your home such as insurance and taxes and whether these will be included in your mortgage payments. Make sure you understand if the costs are one-time or recurring.
Before closing, go through the closing statement to make sure all the costs are covered.
4) Not doing due diligence
Chances are you will live in your new home for several years. It is therefore important to do your due diligence including the shopping outlets available and coming up in the area, schools, new developments in the area, environmental issues and so on.
Before you make an offer on your home, make sure you have answers to these questions.
Also, your long term needs will be very important especially if your family may expand in the next few years. What might look like a lot of space today might be an over crowded house with just one or two extra people.