Buying A Home? Don't Do These 7 Mistakes!
Buying a home is exciting and terrifying! It's a whole new world, allowing you to build equity, enjoy tax credits, and to create a home lifestyle that's truly yours.
But getting to that new home? Well, that's the terrifying part.
And, if you've never bought a home before, you can easily make costly mistakes. It's these mistakes that can sour your whole home buying experience.
That's why we've made a list. Here are our 7 recommendations of what NOT to do when buying a home.
Certainly do all the window shopping you want. But when you're ready to get serious, get a seasoned buyer's agent involved.
From finding the right property, writing a winning offer, negotiating home inspection repairs, to closing on your new home, your agent will guide you every step of the way.
2. Don't Go To Just One Mortgage Lender
Before any seller will take you seriously as a buyer, you'll need to get pre-approved for a home loan. Why is that so challenging? It's a mountain of paperwork!
That's why new buyers will often commit to the first lender they meet with. At least get 3 quotes from mortgage lenders before making that commitment.
You want to survey your options so that you can find the best home loan for you! It's important to feel comfortable with the lender you choose. Shopping around will help you find the right person and company to work with.
3. Don't Hide Your True Income
Sometimes buyers think that if they tell their real estate agent their true budget, the agent will try to sell them a very expensive home.
“Some people are afraid that their agent is going to make them buy the most expensive house that they can afford, so they understate their price range,” says Daniel Gyomory, a real estate agent in Northville, MI.
If you're not straight with your agent, how can you buy the house you really want?
Or, as Gyomory says, "If you tell me your budget is $300,000 maximum but you’re actually willing to pay $400,000, I may not send you listings that could actually be a good fit for you."
4. Don't Keep Holding Out for the Perfect Home
There really isn't such a thing as a perfect home.
Instead, make a list of "must haves" and "wants" so that you can be clear about what's really important to you.
5. Don't Make Lowball Offers
An Inman survey found that 15% of real estate agents felt the third biggest mistake people make when negotiating for a home is to offer too little for a property. (Not talking to a lender first and waiting too long to make an offer are second and third.)
Remember, a ridiculous offer is nothing more than a slap in the face to the seller. Offending a seller may mean he or she won't even make a counter offer.
6. Don't forget to Budget for Closing Costs
Yes, you need a down payment but you also need closing costs. Typically, that's between 2% and 7% of the purchase price.
Sometimes the seller will pay a portion of the closing costs, but it isn't required and should not be expected.
7. Don't Make Any Kind of Big Purchase Before You Buy
Once you've got a contract and your mortgage company is processing loan, don't make any large purchases! Underwriters look at your credit score to make sure it hasn't budged since your loan approval.
Buying a big item can hurt your credit score and that could potentially raise the interest rate on your loan. Worse, it can also cause your application to be rejected.
When you're ready to close on your new home, consider allowing us to do the closing. We not only do closings, we also offer the best title insurance for your home. Visit us on the web to learn more about us! www.lillytitle.com