Buying a new home can be a tricky process for many poeple. Below are the top seven most common mistakes a buyer makes when purchasing a new home:
1. Expectations for Future Home
If you love a home at first site, do not pick up the pen and write an offer before considering the price, the location, you and your family’s needs, and the potential resale value. A home is a huge investment, most likely the biggest one you will ever make, consider all aspects to making a smart purchase!
2. The Different Real Estate Agent Roles
People are often confused when it comes to all the roles that real estate agents play in the current market. There are three types of agents: listing agents, buyer agents, and dual agents. When buying a home hire a buyers agent. They are contracted to looking after the buyer’s interests. They are experts in locating properties that fit specified criteria, writing offers, and administering the contract. Hiring a listing agent or a dual agents makes it difficult to know if they have your best interest in mind when negotiating the contract.
3. Failing to Check Credit History
Credit history is one of the main factors taken into consideration when applying for a loan. Many people have no idea what their credit score is, making it very surprising when they cannot get the kind of loan that they would prefer. You are entitled to a free credit report every year; make sure you take advantage of it. Doing so, you might be able to remove incongruities prior to applying for a mortgage rate, thus ultimately saving an interest rate point or two by cleaning up your credit report.
4. Budgeting
Many people go into the home buying process overestimating what they can afford to spend on a home. Make sure you have calculated all your expenses versus your current income. Once you have looked into your finances, go get pre-approved by a mortgage lender. This will ease your stress when you know exactly up to what amount the lender will allow you to borrow. As well as, helping you to narrow down your search criteria when you know exactly how much you can afford.
5. Home Inspections
It is important to hire a professional home inspector. It could cost you much more than the standard of $225 to $550 for the inspection down the long run if your home is infested with termites or has electrical problems. Bottom line: you should never buy a home without having it inspected by a professional.
6. Reading the Fine Print
Before signing your name to anything, make sure to read the fine print. Make sure to go through every detail with your WK REALTOR®, to ensure that you understand everything you are signing. This is, for many people, the biggest investment made in life. Verifying the contract is crucial.
7. Accepting Oral Agreements
Never rely on oral agreements. It does not matter how much you trust your buyer’s agent, the seller, or the seller’s agent, always make sure you have anything spoken about on paper. If the seller says the washer and dryer are negotiable but the agent says they are included, make sure you get in writing one way or the other.