Homebuyer Mistakes to Avoid
There is no class in school that prepares a homebuyer for everything you will go through when purchasing your first home. And there is no other purchase you can make that will equal the process of buying a house. There are number of items to know and it is easy to be caught off guard as you work through the process.
If you want the home buying process to go smoothly, take the advice from homeowners that have been there before. Avoid doing the following five homebuyer mistakes to help your process go smoothly:
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Do not get emotionally attached
There will come a house that you will enter the front door and it will feel like home. You will want to buy the house on the spot and you will not care about any other house. This is a dangerous position to be in.
When you are emotionally attached to a house, it is very easy to spend more than you should on the house. On the other hand, if your offer is declined, it will seem devastating. However, if you remind yourself that there are always other houses, you can avoid this process altogether.
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Working with the listing agent
You found a house online that you love, so you call up the agent listed on the site to schedule a showing. This is a big mistake.
The listing agent has been hired by the seller to sell the house. That means their alliance is to the seller. You want to work with a buyer’s agent that will be fighting for you to get you the deal that you are looking for.
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Skipping the pre-approval
Getting pre-approved is important in keeping the process of buying your home moving along quickly. The process lets you know how much your lender will approve you for so you will not waste time looking at houses that you cannot afford.
If you are in a seller’s market you need to be able to act fast, and a pre-approval letter helps you do just that. It will also assure the seller that your offer is safe and that you will be able to secure financing.
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Not having a down payment
Most first-time homebuyers have not heard about PMI, or private mortgage insurance. If you do not make a 20% down payment, you will be required to have this insurance by your lender. The insurance does nothing for you, but it protects the lender if you default on your mortgage. It will cost a homebuyer extra on your monthly payment and you will have to keep on paying it until you have 80% equity in your home.
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Skipping the home inspection
If you are trying to make your offer stand out to the seller, you may consider waiving the home inspection, but this can be a very costly mistake. Home inspectors come to look through the house you are looking at buying to see if there are any problems that you should be aware of.
If you skip the home inspection and something goes wrong, the problem is yours to take care of. However, if the homebuyer has the home inspection and the report lists potential problems, you can use this information to negotiate a lower price with the seller.
When it comes to a home, don’t look like a newbie buyer. Avoid making these five homebuyer mistakes to keep the process running smoothly and avoid experiencing problems down the road.