Buying a new home could definitely spell the difference between comfortable living and a quicksand of debt. The following is a list of mistakes that you should avoid when buying a new home:
Mistake #1: Failure to check your credit report
House hunting can be pretty exciting. However, do not get too excited and jump into the task of searching for your ideal homes in the internet without first checking your credit score. Get a hard copy of your credit report. If you have a good credit score, chances are you will be able to get a mortgage plan which has a very low interest rate.
Mistake #2: Failure to come up with a written agreement
Purchasing a home can either give you a lifetime of benefits or headaches. To avoid trouble, avoid relying on verbal agreement. Always ask for a written agreement for everything that you and the agent or the real estate company agreed upon. This is to ensure that everything being discussed and agreed upon are properly documented.
Mistake #3: Not asking about the hidden costs
Before buying a house, make sure to ask just how much exactly you are going to pay on a monthly basis. Sometimes, agents may trick you to believing that you will only have to pay a very low monthly fee. However, you never take into consideration all the other extra charges and fees such as the taxes, utility fees, moving costs and insurance.
Mistake #4: Failure to choose the right mortgage
Before finally signing up for a mortgage, make sure that you are aware of its positive and negative features. See if you can indeed afford to pay the interest rate of your loan with its principal amount on a monthly basis. Others are just too excited that they hurriedly signed up for a mortgage plan. As a result, they end up wallowing in debt and regret.
Mistake #5: Failure to come up with a long-term budget plan
Think about your long-term financial status. You have to carefully decide just exactly how much you can afford. Remember that you will be paying for your monthly mortgage for several months or years. This means that the rest of your financial needs are affected once you buy a new home.
Mistake #6: Failure to get your mortgage pre-approved
Once you get hold of your credit report, ask for help from a qualified lender to make assessments regarding how much can you spend for a monthly mortgage. Remember to wait for the approval from your lending company prior to looking for new homes. This way, you will have an idea about the price of the house that you should be looking for.
Mistake #7: Failure to conduct professional home inspection
Spending some amount of money to pay for the services of a professional home inspector may prove to be costly. But, in the long run it will certainly save you from a lot of trouble. Professional home inspectors are skilled at looking for areas that need to be repaired. An inspection report will make it easier for you to negotiate with the seller regarding home repair needs.
Mistake #8: Failure to check the neighborhood
A house is definitely not a home if you find it hard to sleep at night due to the noise created by your neighbors. Make sure that the environment where your house is situated can assure you of a safe, clean and peaceful neighborhood. If not, never take the risk.
Hannah helps run the website, HowMuchIsIt– a website that helps you answer questions like, “How much does a real estate agent cost? and many more. Browse their cost helping website that boasts more than 2,000 guides!