Buying a house is a big investment and you need to be extremely cautious when making this decision. Here are some mistakes that you should avoid while buying a home:
Choosing a wrong real estate agent
You must hire a reliable real estate agent who understands the market and can help you get the right property. You must make sure the agent has good communication skills and extensive experience in the industry. He must help you right from searching the property to preparing the documents, negotiating, and closing the deal. You should also ensure that he is licensed and experienced to handle everything professionally.
Buying before getting preapproval
Before you purchase a home, it is important that you do your homework. You should know about the amount of loan you can borrow and ensure that you get a pre-approval letter from the lenders. It would be disappointing if you finalize a property but later realize that your loan is not approved. Some agents do not arrange property visit if you do not have a pre-approval letter.
Spending over the budget
You should make sure that you spend less than the mortgage amount you have been approved for. Buying a house involves many other expenses such as property taxes, maintenance, appraisal fee, credit report fee, homeowner’s insurance, etc. You should always keep these charges separate from the monthly mortgage to ensure you don’t face any financial difficulties.
Avoiding home inspection
You must hire a professional to carry out a thorough inspection of the property, which includes all the structural and plumbing issues. He will also give you an estimate of the extra money that you might need to spend on repairing the house.
Ignoring the resale value
While buying a new home, most people tend to believe that they will keep it forever. However, unexpected changes and events in life such as job change, illnesses, etc. can lead us to selling the property. Therefore, make sure that you purchase a property that would give you higher returns on your investment.
Trusting verbal agreements
A common mistake often committed by homebuyers is trusting verbal agreement by the sellers. These are not binding and therefore, you must ensure that you get everything in writing. However before you sign the deal, make sure you read all the terms and conditions that are written in fine print.