Congratulations! You have made the decision to buy a house. You go online to start searching for homes, go to open houses, drive around your neighborhood, fall in love with a house, you go ahead and want to make an offer just to find out you can’t…..wait a minute, what? Why can’t I make an offer? Most buyers start thinking in buying a house before they are ready. Most buyers go online to start searching for homes before they even know how much they can afford, their credit score or what are the first steps they should be taking. Let’s try to avoid some mistakes buyers do when buying a house.
Searching for houses without being pre-approved
The first step when wanting to buy a house is getting pre-approved for a mortgage. Getting pre-approved will prove that you are serious about buying a property to realtors and sellers and will help you acquire the best offers. It will also help you have an idea of how much you can afford and your budget limit. Do your research and ask questions to the lender or mortgage broker to make sure you have enough income and down payment to purchase a property. The mortgage is not the only thing you have to worry about, it’s also home insurance, property taxes, utility costs and home maintenance. Do not forget about the furniture and moving expenses.
Not reading or understanding the contract details
You are finally pre-approved, found a house and made an offer, but, did you read the contract details? So, you found the house of your dreams and the property has all appliances, that’s good, less expenses. Just to find out after the closing there is no fridge because you forgot to read on the contract that the fridge did not convey, you just assumed the property came with all the appliances. Also, you are sitting in the title company and just found out you have a transaction fee you think you did not know about, but it’s on your contract. Contracts are to be taking seriously since you can be hold liable for not fulfilling its terms. Make sure you read, check deadlines for inspections and understand what’s on the contract before you sign and have someone else double check the contract to make sure it has been done correctly.
Not performing an inspection or final walk-through
Inspections are important when buying a property. Inspections can help you find out if there’s any issues or expensive repairs that need to be done to the property. Even if it’s a brand-new construction property it’s important you have the property inspected for any possible issues with plumbing, electrical, septic tank, pool equipment, appliances or any fixture that could be a possible hazard. Don’t forget to have a final walk-through of the property to make sure all repairs or any damages have been fixed and repaired and to make sure nothing is missing as stated on the contact like appliances, ceiling fans or any attached fixture.
Getting another loan while in the process of buying a house
One big mistake buyers do when buying a house is to make a big purchase, like getting a car loan, without knowing at the end of the process of buying the house the lender pulls the credit again to make sure their financial situation hasn’t changed. In this situation you’re putting at risk the possibility of closing and getting the house of your dreams. Now the lender must go back and revise if you’re able to pay your mortgage. If you are thinking about buying a house never buy a car first, make a big purchase or switch jobs while you are in the process of buying a house.
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