5 Big No-No’s Every Homebuyer Should Know
The home buying process can be an overwhelming, stressful, and sometimes a maddening experience—but it doesn’t have to be! Save yourself the headache and consider the following tips before making what very well may be the most important investment you’ll make in your life.
Choosing the wrong real estate agent
Finding the right real estate agent can really make or break the entire home-buying experience. Take the time to educate yourself on different real estate agents you want to work with. Don’t be afraid to ask your real estate agent if they’re comfortable texting, working certain hours, and if they’ll make themselves available on weekends. If you happen to work odd hours for example, it would be nice to find an agent who is comfortable signing documents online, and who will pick up their phone outside of office hours. Also look into their sales history to understand what their past listings sold for and if it was under or over the asking price. This harmless research allows you to match yourself with a real estate agent whose style works well with yours.
Failing to get pre-approved before starting to shop
It’s very important that you have a clear understanding of your financial standing before even thinking about shopping for a home. Getting pre-approved is a great way to not only find out if you can afford a home, but it also gives you a glimpse of how much you’ll be paying on mortgage. Once you know what your mortgage payments will be, you can accurately make an assessment to see if you would be able to handle these payments in the future. Some agents or brokers request that buyers get pre-approved before showing them any properties as a way to protect all parties from any unnecessary headaches down the road.
Being too sensitive
When you first view a property, it’s important to have somewhat of a critical eye and not be fooled by what you see right in front of you—even if it seems like your dream home. While a home may boast a spacious dining room, a great paint job, and a beautiful backyard; there’s always a chance there could be issues beneath the surface. Instead of focusing on what the home has to offer day to day, it’s important to look at the entire investment you’re making. Learn what the home’s value has been in the past and what it could be in the future. You don’t want to end up losing money when it’s time to sell this home down the road.
Changing banks or making big purchases
When you apply for a loan, loan officers immediately examine your paper trail. Lenders look deeply into your spending habits, monthly income, job stability, taxes, student loan debt, credit card debt, and any other expenses you’re involved in. If you have recently switched banks or transferred a large sum of money out of your account, it’s hard for the Lenders to gauge how much money you spend on what. Even something as simple as financing a car or new furniture can effect a Lender’s decision to give you a loan. Don’t jeopardize your chance of getting your dream home by making one of these simple but costly mistakes.
Cutting costs by skipping a home inspection
Home inspections are a very important step in the home-buying process. Inspections can open your eyes to the problems you never would have realized on your own. Many buyers wince at the notion of spending more money on something like this, but if there is any expense to forgo—this sure isn’t one of them. Home inspections vary in price depending on the area and size of the property, but typically expect to spend anywhere upwards of $400. Don’t let money get in the way of you ignoring problems that could prove to be detrimental (and more costly) in the future.
Can you think of another big no-no that homebuyers should know? Comment below.