5 Mistakes to Avoid When Buying a Home
If you are moving and buying a home the last thing that you want to do is make a lot of mistakes that could have been avoided with a little helpful guidance. Everyone tells you things that you should be doing during the buying process, but few think to tell you of common mistakes that you need to avoid. Even if this is not your first house, these tips will come in handy. Chances are good that you may have made a few of these mistakes the first time around that you would like to avoid.
- Not Truly Looking at Your Budget – Sometimes, the excitement of buying a home causes you to overlook certain expenses in your budget. You are so excited to start comparing moving services and packing that you do not take the time to sit down and create a detailed budget to determine if you can truly afford that home that’s just a “little” over your budget. Are you factoring in your insurance premium that you might only pay quarterly or bi-annually? Are you remembering to leave some money in the budget for unexpected car repairs that always come up at the most inconvenient time? Are school expenses for your children being considered? Books and supplies will just get more expensive every year.
- Not Checking Your Credit Report First – You might think that you know what is on your credit report, but do you really? The National Association of State Public Interest Research Groups has found that 79 percent of the population has errors on their credit report. You may even think you are getting a great interest rate because you have a good credit score, but perhaps it could be even better if those errors you didn’t know about weren’t lurking there.
- Not Considering the Home’s Resale Value – Right now, you may be thinking that you have every intention of growing old in that house you are buying, but you really never know what curve ball life is going to throw at you. You need to consider the home’s resale value, because if you need to sell it in the future, you will wish you had thought about this during your purchasing decision.
- Not Factoring in Hidden Costs – That number you are using to crunch numbers to figure out your budget may be pretty far off from what you are actually going to pay. You also need to consider the appraisal fee, escrow fee, house inspection, credit report cost, notary fee, property taxes, and homeowner’s insurance. Don’t forget you are going to need some money left over for moving services, as well.
- Completely Trusting Your Realtor – Okay, you want to trust your realtor, and you should to an extent. However, this does not mean you should blindly believe every word or follow every bit of advice. Keep in mind that their advice could be in their best interest. Don’t be afraid to ask questions or seek answers elsewhere, and never trust a verbal agreement.