Common Mistakes Home Buyers Should Avoid
Purchasing a home is one of our biggest dreams. This is why we should take our time and prepare for it, as there are many mistakes that buyers commit when purchasing a home. Do not let this happen to you. You can avoid such mistakes by making a checklist. Write the things that you should do and check before you purchase a house.
You can make a lot of mistakes. This may concern finding the right lender or choosing the right mortgage term. This may also be about looking for the right neighborhood. There are also those who fail to check the house. Below are some of the common mistakes people make when purchasing a house.
Choosing the wrong lender:
The number of lender in the market can be overwhelming. Although this is the case, a lot of homebuyers still fail to find the right lender. Many think that all lenders are the same. Thus, they pick the first lender that they come across with.
Although lenders are similar, they are not the same. The rate they offer is not the same. Their terms are also different. If you compare their Good Faith Estimates (GFE), you will learn that their fees and charges are also different. This is why you have to take your time when looking for the right lender. Look for banks or firms with good reputation. If you want to work with a smaller firm, make sure that you make the necessary research. After you have listed the potential lenders, compare their services, mortgage rates and GFEs.
Choosing the wrong neighborhood:
Many fail to consider the neighborhood when looking for a house. This is a big mistake because location is a very important aspect of purchasing a property. There are several things you have to consider when picking a neighborhood. In addition to a safe environment, you should also consider its accessibility. How far is it from your work? Are there good schools nearby, how about hospitals and shopping centers?
You should also be concerned about the HOA rules. Do you agree with them? Can you live by them? Different communities have different rules. Some rules may be acceptable for others but nor for you. This is why it is important that you are aware of the HOA regulations before your decide to purchase a house there.
It is also important that you check the possible neighbors you will. Even if you have the most beautiful home in the neighborhood, it would not be a great home if you were next to the worst neighbors. To prevent this, get to know the people there first before you decide to live there.
Failing to check the house:
Many forego inspection because of the low prices. However, this is a crucial step in home purchase. If you have the property inspected, you will be able to check if you can transfer to the property after the closing. This will also give you the chance to negotiate the value further. Moreover, you can include your conditions in the purchase contract.
You should not miss the final walkthrough as well. This is you final chance of checking the property to make sure that it is in the condition that you agreed to. You can also verify if all the conditions in the purchase contract were implemented.
