7 Costly Home Buying Mistakes
The home buying process should be exciting but also can be a bit overwhelming. Add “confusing” to that, especially if this is your first time.
With so much on the line, make sure your investment is protected by avoiding these 7 costly home buying mistakes.
Ignoring credit issues. If you have less-than-perfect credit, consider cleaning it up before applying for a mortgage, even if that means putting your search on hold. Doing so can save you thousands of dollars on interest alone.
Going it alone. Buying a home is likely the biggest investment you’ll ever make. Be sure to have a buyer’s agent on your side to advocate for you and your interests. Once you enter into a contract with a buyer’s agent, he or she not only will show you the houses that best match your needs and wish list, but also will serve as your advocate throughout the buying process.
Afraid to negotiate. Unless the a newly-listed home is priced well below market value, don’t be afraid to offer less than the asking price. Consider how long the property has been on the market as well as recent sales of similar homes in the area before presenting an offer.
Going over budget. Your purchase budget should be determined by the amount of your pre-approval and your monthly budget. Be sure to factor in your existing monthly expenses like groceries, car payments, etc., as well as the recurring costs of owning a home like utilities, maintenance, insurance, and taxes.
Getting cold feet. There are several reasons you might exit the purchase process, like major issues revealed by a home inspection or the inability to obtain financing. In any such instance, your down payment will be refunded. On the other hand, if you back out because you get cold feet or find a house more to your liking, you risk losing that deposit – which can be several thousands of dollars.
Skipping the inspection. A licensed home inspector can point out defects that the typical home buyer may not notice, like signs of water intrusion, insect or rodent infestation, and problems with the HVAC, plumbing, or electrical system.
Forgetting the walk-through. The search is over, you’ve done the inspections, and your financing is in order. All that’s left is the closing, right? Not so fast. Just before closing, take a final walk through your soon-to-be home and check for any issues that may have been hidden by furniture, shelving, or area rugs. Switch all lights on and off, flush the toilets, check under sinks and in the basement for leaks. This is your final chance to spot problems before the house is yours and you become responsible for fixing them.
Here’s one more thing to consider: even the best home inspectors are not heating and cooling professionals. Which means they’re not qualified to tell you the exact condition of the home’s HVAC systems and whether the need to repair or replace is perhaps right around the corner. To ensure you’re getting the best in home comfort – even if you’re not looking for a new home – contact Correct Temp for a very thorough system cleaning and inspection.