Buying a home is for most of people, the biggest investment of their life. Therefore, before making this important step in your life, you need to properly informed and prepare everything with extreme caution.
Let’s see together what are the possible mistakes that you can do and how you can avoid them.
1. Working without a trustworthy expert adviser
You should seek advice only from a trustworthy and recommended lawyer or real estate representative.
When you hire a real estate representative, choose one experienced and recommended. It is vital that your real estate agent to understand your requirements and desires and accordingly to find what you want at a good price.
A good adviser can give you also, peace of mind and confidence that you do the right thing at the right time. No more doubts and worries in terms of housing market developments.
2. Wasting your time with homes that you cannot afford
The best way to proceed is to get a proper mortgage approval, before starting looking. Do not forget! A mortgage pre-approval is the lender commitment that specifies the purchase price, interest rate and the term.
Therefore, it is wise to concentrate your efforts only on homes you know you can afford.
In case of a brand new home, you can get a reduced rate within 18 months, according to the period of construction.
3. Buying a wrong house or buying a house in a wrong location
Think twice and analyze thoroughly all the factors, pros and cons, before buying. Do not ever forget, it is one of the biggest decisions of your life.
Examine whether the house or location meets your requirements such as floor surface, number of levels, number of bedrooms, bathrooms, size of the yard, or if it is close from shops, public transportation or job.
You should visit the neighborhood from time to time, at different times of the day, to ensure you take the right decision buying the house.
4. Not hiring an experienced home inspector
Hiring an experienced home inspector, even if you buy a brand new home, is extremely important. A professional inspector can inspect everything from the foundation to the roof. You will know if everything is OK, or if not, which measures should be taken and if the repairs are minor and inexpensive.
5. Ignoring your closing costs
Before signing, make sure you know which the total cost is and if everything is included in total cost such as utilities, contingencies, lawyer fees, etc.
Also, be prepared for unforeseen costs such as construction delays.
It is vital to understand your mortgage:
a) Payment privileges
b) Interest rate
c) If the mortgage is portable
d) Needing of life insurance
e) If the mortgage is fixed or variable, etc