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Buying a Home
Kara's Commitment to Buyers
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Why Use a Realtor to Buy a home?
Common Home Buying Mistakes
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Buyers |
Mortgage Calculator
COMMON HOME BUYING MISTAKES
Buying a home can be a complicated process.
The following list explains some of the common home buying
mistakes that can happen to the average home buyers.
Setting Your Sights Too
High
You think you have found the perfect house. You loved it as soon as
you walked inside and you are pre-qualified for financing. Stop and
think about the most important question to ask yourself, "Can I
afford it?" You can use a Mortgage Calculator to assist you
with this question.
One of the worst home buying mistakes is to underestimate the impact
a mortgage will have on your budget. Even if you can make the
monthly payments, how much it will affect your other monthly costs
is an important issue to keep in mind. Make sure you will not have
to unexpectedly cut back on luxuries or future financial plans to
afford the mortgage.
Experts recommend keeping your mortgage payment plus all of your
total monthly expenses at 35 percent or less of your monthly income
before taxes. A monthly debt over 35 percent may mean you're spread
too thin. This can definitely vary, of course, due to individual
spending habits.
Forgetting About Resale
Value
Forgetting about a house's resale value can be an expensive home
buying mistake. You may think that you will never sell your newly
found home but changes in life can happen suddenly, you might have
no other choice but to put your house on the market. Will you be
able to sell it without losing money? This is an important
question for your realtor.
Forgetting About
Location
Being aware of a your new home's location is a top tip for buying a
house. Buyers frequently forget to review the location of their new
found dream house before purchasing and realizing too late that they
should have spent more time researching the location. Although the
house itself may be just perfect, a busy short cut road or an
overlooked bar down the road can make your new home not so cozy and
also reduce its market value.
Always go back to the location at different times of the day and
night to see what the neighborhood is really like. Do drive bys,
Park in a near by parking lot or on the side of the road and see
what you are in for. What are the neighbors like? Is there heavy
traffic? Do people park on the sides of the roads? How far are the
closest supermarkets and schools? These facts amongst many others
can easily effect the quickness and value of a resale. Doing
good research on the location is a must for you to make sure you are
happy in your new home. You can also call and interview neighbors
who are willing to share information on the location. Knocking
on a neighboring door for personal interviews without calling first
can be dangerous.
Rushing into Mortgages
Buyers frequently feel anxious and take the first mortgage that is
offered. Asking questions when getting a mortgage may save you
money. Always ask to know about all your options. not just one
option. Different types of mortgages and different lending
institutions offer varying rates and packages. Make sure that a
mortgage is right for you before accepting it.
Not Pre-Qualifying a Mortgage
Experts recommend pre-qualifying for a mortgage. By getting a
pre-qualified mortgage, you know you qualify and precisely the price
range you are looking for. Sellers will always feel more comfortable
working with buyers who are pre-qualified.
Skipping Inspections
You can save a few hundred dollars by avoiding inspection fees, but
it could cost you thousands. Being unaware of hidden damages could
ultimately cost you thousands of dollars in unexpected home repairs.
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