It can be hard to buy a home -- even if you aren't a rookie. There is so much
to know, learn and remember.
Here are the top ten rookie mistakes that you shouldn't make:
1) Rushing into buying a home.
Buyers shopping in extremely tight markets often feel pressured to make an
immediate offer on a home. Other buyers are just so excited and ready that they
just love the first house they see. You should take the time to become familiar
with the local market before you make an offer on a home.
2) Not asking questions.
It's a big purchase. Ask questions. Yes, it can be a little uncomfortable,
but if you don't ask, you may be surprised a little later on. And don't believe
everything you hear. Sometimes a seller may slip a few years of the age of the
roof or the air conditioning system. Make sure that you have the property
professionally inspected.
3) Searching for the dream home.
It is really hard to find a home that will meet every requirement you have. A
buyer who repeatedly turns down homes that meets most of the criteria will annoy
the agent and may be losing out on the best available property and good
financing.
You should view different homes before you make an offer. This helps you
understand the marketplace and local prices. Don't jump on the first property
you see, but don't drag your feet about what you love.
4) Overbuying a home.
You don't want to be seduced into paying so much for a home that you can no
longer go on annual vacations, out to eat or to the movies. Work with your
lender and your budget to find a reasonable target price range and mortgage
program that will work best for you financially. Then find the house that works
for your family.
5) Saving a full 20% down.
If you can, do it. Putting all you can down is really the best way to find
reasonable financing out there. But it isn't always reasonable to assume that
20% of the purchase price is just sitting in savings, waiting. You can buy with
much less down. Consider VA, FHA and loans with private mortgage insurance, they
all come at less than 20% down.
6) Getting swept away.
You have to be realistic. Think about practical matters such as storage
space, parking, structure, maintenance, commuting. Don't just see the pretty
flowers in front and the nice kitchen and be sold. Think about the everyday
things. If it doesn't fit your everyday life, for instance a 40 mile commute to
work, you may hate it after a while.
7) Zoning issues ignorance.
You never think about zoning. Until a 7-11 moves in next door to you. Or a
loud fire station. Or a nuclear substation. Ask about the zoning of the property
and surrounding properties.
8) Turning down representation.
The seller probably has a broker. That broker isn't working for you. You must
have your own representation at the table. A buyer's broker, your attorney or
both can give you equality at the bargaining table. And a lot less stress.
9) Hold the inspection.
You have to have a professional home inspection. You have to. You have to.
There is no exception. Existing or new home, it doesn't matter. Protect yourself
from a bum deal by having the home inspected.
10) Underestimating closing costs.
You need more than just a down payment. Your lender can help you determining
your probable closing costs. You don't want any financial surprises, so be
prepared for these costs.
Are there more mistakes people make? Yes. Buying a home is a complex process.
The best thing you can do is ask questions. Ask everyone about everything.
Copyright 2006 #1 Loans USA