Common Mistakes by Home Buyers
I found this article the other day (https://www.savethebills.com/7-common-mistakes-made-by-first-time-home-buyers/). It had some great tips of what not to do when buying a home. They go through seven mistakes first-time home buyers make sometimes. This advice rings true for any buyer. Here are their seven mistakes:
1) Choosing the Wrong Loan - Looking at what the monthly payment is going to be is important, but it is also important to see the long term effects. Fixed rates are almost always better than adjustable rates. Understanding hidden fees in loans is also important. VA is a great loan, but it comes with extra fees, so it isn't always the best choice. Down payments less than 20% can add on private mortgage insurance (PMI) to your monthly payment, too. Its important to work closely with a good mortgage broker to understand your options and pick the right one.
2) Buying Too Much House - It is so easy to get house fever. When buying your first house, you should start small. Figure out what you like and don't like in a home. A well designed, small house can have better usage and fit your family better than a more expensive, larger, poorly designed house.
3) Skipping The Home Inspection - No, just no! You need to know what you are buying. This is likely your largest investment at the moment, and you need to make sure it is a wise investment. Don't get surprised by major (or minor) issues after you have already signed the papers and the house is yours.
4) Not Shopping Around for a Mortgage - Did you know that you can apply to multiple mortgage companies and then pick the best loan rates they have to offer you? Sometimes, you can even bargain with them to get the company you like best but under the terms of the best loan. We have done that and got a better loan rate with some extra bells and whistles.
5) Only Viewing the Property Once - So I would say this is subjective. Yes, it is good to look at the property a couple of times. It is more important to see the neighborhood you are buying into to make sure you like the neighbors. Funny story, Peter actually didn't see the house that we own until the day we were moving in. It was a long distance move and it just worked out that way. He did FaceTime with Traci when she was touring the property though. And for the record, we both love the house we have!
6) Limiting Their Home Search Too Much - Here is where an agent that knows the area can help. Understanding your needs can help expand your search to look in areas you will love. A home search shouldn't take week after week to find the house. A good agent will show you the right areas and help you narrow down your options before you start to look. It can start as a broad search, but narrow quickly after figuring out what fits your needs.
7) Not Using a Realtor to Make the Purchase - Did you know the seller pays the commission? It costs you nothing as the buyer to use a Realtor. Because of this, why not use someone to guide you through the process. You will find a better home, in a shorter amount of time. Plus you will have someone to guide you in the bumps in the road, and there will be at least a couple. It is the Realtor's job to help you understand what is a big deal and what isn't.