Mistakes to Avoid When Buying a House
Mistakes to Avoid When Buying a House
On the surface, buying a house seems like it should be an easy process. You look through the listings, schedule a showing, and put in an offer on a house that you like.
But, things aren’t always as simple as they seem. And, while the steps involved with buying a house might seem very simple, ‘simple’ doesn’t always mean ‘easy.’
Making mistakes in your home buying process can cost you both time and money. That is why home buyers will want to avoid these mistakes when buying a house.
Using the first mortgage lender you talk to
Success with buying a house requires dedication to the process. And that extends to screening your potential mortgage lending partners.
Home buyers will want to be aware that not all mortgage lenders are the same. They each do not offer all of the same options.
This is why it is important to shop your mortgage before choosing what lender to work with. You will want to find out what type of programs they offer as well as what the interest rates are. Once you have this information, make sure you choose a lender that you are comfortable working with as they will have access to all of your personal information.
Not being realistic with your budget
Before you start looking at houses it’s important you know what your budget is. But be aware: this is not the same number that your mortgage lender said you could be approved for.
Home buyers need to think through what you can actually afford to comfortably pay. Being unrealistic about your budget can drastically slow the purchase process, or worse, result in you getting into a home that you cannot afford.
Make an insulting offer
It used to be more acceptable to make low ball offers when trying to purchase a house. In fact, it was almost expected by the sellers.
However, times have changed. And so has the negotiation process.
Many areas are experiencing a hot seller’s market. This means that if you make a lowball offer there’s a good chance that you will be quickly ruled out of the negotiating process altogether. Instead, you should come in with a realistic offer and be willing to negotiate.
Buying a car before you close on your house
Actually, this rule doesn’t just apply to vehicles. This rule extends to any major purchase.
Even if you are pre-approved for a loan any change in your finances before you close on your house can cause your loan to be denied. Home buyers will want to avoid running out and spending a lot of money before you have completely closed on your mortgage and have the keys to the house.
Avoiding these mistakes will help home buyers throughout the process of purchasing your home. It’s also a good idea that as you begin the buying process that you make a list of the things that you actually need in a house. This will help ensure that you are only spending time on homes that you want to look at.
But be aware that chances are that you will have to make compromises in some areas. While this does not mean buyers should settle, holding out for the perfect house may mean that you never end up finding it.