Common Home-buying Mistakes
Q. What are the most common home-buying mistakes?
A. Not knowing how much house you can afford. Mortgage calculators are available online. Be sure to factor in such items as property taxes, maintenance and insurance. A conservative approach is best. Take a look at hard look at your current income, expenses, savings plan consider how the new house payment will impact your budget. Remember once you own your own home all the repair and maintenance are your responsibility so have a amount set aside or repair emergencies.
Not considering your needs, both immediate and for the next 5 to 10 years when considering, neighborhood location, square footage, number of bedrooms and bathroom, etc.
Not shopping for loan options. You need to know your credit score, get pre-qualified and pre-approved. Do not make the mistake of getting pre-qualified with more than one lender. Each time you get a new pre-approval your credit is check. Multiple inquires can lower your credit score making the best rate and terms out of your reach. Once you know your score simply tell the lender what it is and ask for a summary of loan options offered by his or her company.
Not including mortgage financing and professional inspection contingencies in the contract. The mortgage financing clause saves you if the home doesn’t appraise for the offered price; the inspection clause allows you to negotiate (or cancel the deal) if an inspector finds problems. A properly inspected home often includes a test for Radon gas ($125-$150) sewer line inspection ($120-$300) general home inspection ($250-$500) and with some properties tests for mold ($200-$400) and lead-based paint ($250-$350)
Falling in love with a house without considering all the facts, such as structural flaws, location, neighborhood and potential for resale. Remember as you are home shopping the last great house has not yet sold. Take your time and make sure to get good advice and the help of experienced professionals.
For more information on home buying or to receive a Home Buyer's Manual please contact me at Nell@Talk2Nell.com
Friday, September 23, 2011
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