Checklist
Buying a new home can be a very exciting experience. There are many tasks that must be done in order to complete the entire transaction such as finding a lender, qualifying for a loan, contacting a property appraiser and eventually signing the contract and paying closing costs. Each person is responsible for their part in order to ensure that the entire transaction runs smoothly. Sometimes professionals such as Abbe Edelman sadly witness home buyers make very common mistakes that many times are entirely avoidable. Here are some of the most common mistakes made by homeowners.
Failing to do Adequate Research
One thing many homebuyers fail to do is to take some time for researching things that can make or break a deal. First of all it is imperative to understand the reality of where the family’s needs and finances are. The smart home buyer will take the time to carefully analyze all assets and debts. One thing that should be done before beginning the pursuit of finding a house is look at your own credit report. Knowing the true state of your finances can save you a lot of time down the road. You will also want to get pre-approved not simply pre-qualified for a home loan. It is also important to consider how manageable a mortgage will fit into the household budget.
There are other areas which need researching too. For instance, take a very good look at the neighborhood. Even though you are just buying a house it is in a certain location. You will want to know about the condition and quality of schools, crime rates and any upcoming or ongoing political issues in the area. Look at other comparable homes to determine what a fair price range is. A property appraiser can help you determine a reasonable range for homes that match your preferences.
Saving Your Savings
Many people save up for months or years to have enough to make a down payment on a home. It is a very smart move to keep some of the savings if at all possible. Do not pay all of it down on the house. The reason you want to keep some money in savings is because there are usually plenty of other large expenses that go with purchasing a house. If this is a first house there can be appliances to purchase. There may also be some repair work or small home remodeling projects that may need to be completed before you ever move in. Keeping a small amount of your savings can help cover these types of costs should they arise.
Failing to Check for First-Time Buyer Incentives
First-time buyers can usually take advantage of various buyer incentives. These can vary between regions, but most areas offer some type. Some incentives or programs can help you save money by helping to reduce the required down payment amount. Some can help get a loan approved even though your credit is somewhat lacking. Before purchasing a home, it is important to talk to a professional to determine what types of incentives are available in your area. It is usually a very smart move to pursue first-time buyer incentives.
Taking the First House You See
Even if you feel like you fell madly in love with one of the homes you looked at with your spouse, do not tell the real estate agent. If they feel like you are that interested they will not be as likely to be flexible on the price. When an agent discovers that kind of dedication, they will most likely hold out for a higher price.
