Buying a home is exciting. There are some common mistakes made by home buyers that prevent them from achieving this dream. The following 17 points can be dream killers. The process of getting a home is usually stressful. Being aware of these mistakes ahead of time you may not experience the much stress associated with the process.
Most dream home owners do not know how much they can afford for a home. Most people dream of very good homes but with very low purchase ability. This finally makes some of them unable to realize their dreams. Write down all your monthly expenses.
Let the bank assess your finances and get you pre-approved before you place an offer for a home. This would avoid time wasting when placement is done while you to while you do not qualify for a loan. You should not have been unemployed in the six months to applying for mortgage.
First time home buyers always make the mistake of getting emotional. If you proof desperate, you may end up paying too much money or buying a home with problems. No matter how ideal you find a home, do not let your home seller or his agent be aware of that. If you are unable to purchase a home, move on and keep negotiating. Instead of buying a home in desperation stop looking for a while.
Failing to consider additional expenses
Once you are in your home, you will have additional expenses. This includes monthly finance for the maintenance of your home and insurance. Engage a competent and independent professional to check your potential new home.
Choosing the wrong mortgage
Carefully choose your finance package. Choose an independent finance broker that has access to a variety of lenders.
Always be flexible in your choice of a home. If not, you may end up paying rents for longer that you think. You may need to forgo that extra room, live for sometime in an undecorated home. You must learn to accept certain aspects such as location and size of the home which cannot be changed. It’s not all about price but the quality of the home. Go for a quality home and not a cheap home.
Avoid fancy homes because they are more expensive. Do not dual on stylish furniture. Choose undecorated or less decorated homes and pay for the decoration yourself. You will end up paying far less than buying an extremely decorated home. Pay more attention to the quality of the building, renovations and unchangeable features.
Going beyond your budget
Buying a home far more than we can afford may derail our future finances. Although you may want a little more than you can afford the bank will always offer limitations as per our borrowing capacity.
Type of home
Buying a home is a lifetime time investment. It is the biggest purchase a person will make. In doing so certain facts must be admitted such as your intended family size; which will be a major guide in the number of rooms. You may in future decide to resell and get a bigger and more comfortable one. Stop waiting for a perfect property.
Rush at first site
Every buyer wants a perfect home which in reality does not exist.
Some people end up unable to achieve the dream of owning a home because of failure to inspect. This may end up requiring huge amount of money for repairs. If possible you may get some experts to evaluate the state of the home before you run into the headache of paying for a home not worth the amount levied on it.
Future development plan
What many do not take into consideration is the future development plans of the location of their proposed homes. If there is a lot of undeveloped land at the site then you should think of what plans the state have for the site. May be a major highway will be constructed there, and then your neighborhood could be a traffic site during rush hour.
Overpaying for a home
Buyers get into the trap of buying a short sale thinking they have bought below the market price. When shopping for a home compares its historic price and current conditions, the homes features and buyers need.
Bargaining instead of negotiating
Home buyers always want to get the lowest price possible for a home. In doing so, they do not consider the real value of it and at times are being dismissed early. When you find an appreciable property make the right offer. Propose values very close to what you will ultimately like to end up. Dismissal also discourages you from making a second attempt.
Shopping without an agent
Buyers only seek for the services of a real estate agent when they encounter difficulties. Real estate agents understand the market value and will assist you to get an affordable home of your dream.
Choosing the wrong mortgage
Mortgage values vary depending on the state of the economy. There are times when the seller’s market is booming and times when the market suits the buyer. Waiting for a period favorable to you is gambling. Put your records together, decide the amount to spend on a home and go for it. Your current and future needs should be the determining factors.
Not understanding your contract clauses
Buyers often rush in to sign the purchase contract. Do not rush. Request for enough time to read, understand and seek for advice regarding your purchase contract. Make sure your interest is protected by the clauses of the contract. Make adjustments where appropriate. Do not be deceived you can make adjustments after signing your contract. After signing your contract, the seller has no obligation to accept a new negotiation.
Misunderstanding real estate agent role
You must understand that real estate agents work for their clients, the seller. They are legally obliged to work in their interests. It is recommended to seek the service of a professional buyer’s agent who will work in your interest.