Buying a home is an exciting event and likely one of the most important decisions you will make in your lifetime.
No matter how excited you are to start shopping around for houses, it’s essential to recognize that it is possible to make mistakes along the way.
Are you looking into buying and wondering how to go about it? Read on to learn mistakes that can be made when buying new homes and precisely what you need to do to avoid them.
1. Looking without Funds
Before you begin looking at options for homes, you need to secure funding. Get pre-approved through the bank of your choice and find out how much money you qualify to get.
This is an essential step because you might end up getting approved for less or more money than you think.
The amount of money you can spend will drastically narrow the houses you’re going to consider looking at, so narrow down the homes immediately by getting this step out of the way.
2. Rushing the Process
We’ve already established that buying a new home can be exciting, but rushing the process to get a house as soon as possible is not the way to do it.
Instead, come up with a home shopping strategy. Make a list of your needs and wants, and try to be as specific as possible.
Your real estate agent can help you with this if you don’t know what’s realistic for your price range. If you’re in Idaho, take a look at Idaholegacy.com to find a realtor that can work with you throughout your home buying process.
3. Careless with Credit
Being careless with your credit can be one of the biggest mistakes you can make. In some cases, it could result in you losing out on a home.
When it comes time to close on your home, the mortgage lender will look through your credit report again to see if your financial situation has changed since the process began.
If they see that you have opened new credit card accounts or dramatically increased your balances, the final loan approval may not go through.
Be sure to continue paying your bills on time and avoid taking on new debt in any form.
4. Skipping the Inspection
The home you’re interested in buying might appear perfect during the walkthrough. Still, many significant issues can lurk just beneath the surface that won’t be found without a professional.
To make sure you don’t end up investing your hard-earned money into a seemingly perfect house that will end up needing tons of work, get an inspection!
5. Assuming You Need 20% Down
A common belief is that you need to put 20% down to purchase a home. Thankfully, this isn’t the truth.
You might be able to put as little as 3% down, depending on your loan type. Do some research to figure out how much you might need, and don’t delay looking for a home if you don’t need to.
6. Expecting Perfection
Everyone dreams of a perfect house, but the reality is that typically it’s just not possible.
Instead of having an exact picture in your mind of what you want your future home to look like, focus on how many rooms you want, the layout you’d prefer, the size of the yard, etc.
Cosmetic changes can be made easily over time, so having a house with a good structure is most important.
Buying New Homes: Avoid Pitfalls
It’s possible to make mistakes when buying new homes, so this article highlighted six common mistakes and how to avoid them.
Secure funds before you look at homes and have a home shopping strategy in place. Don’t be careless with your credit or assume you need to put 20% down. Don’t skip the inspection when you find something you like, and avoid expecting any home to be 100% perfect.
Keep these tips in mind to have a smooth home buying process.
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