Buying a house can be exciting but can be terrifying as well. A home is one of the most significant investments made by many people and for some its a once in a lifetime experience. However, there are many risks associated with the purchase of a house. These risks can translate into thousands of dollars in damage.
The fact is that first-time homebuyers with no previous experience in purchasing a home can make significant mistakes. For this reason alone, it is essential to seek guidance and do your research before making that big move. From good reputable realtors, mortgage lenders, to credible Real Estate Inspection Atlanta officers, everyone can be accommodating in assisting you with buying a home. Buying a home is a big deal, so never hesitate to ask questions, do your research or look for better options. After all, the house you are about to buy will be home for the next couple of years.
Talking to a real estate agent, I found out some of the most common mistakes homebuyers make when buying a house. These mistakes are often made because of ignorance and lack of knowledge. However, a home buyer can avoid these mistakes if he keeps in mind the points listed below:
Get A Credible Real Estate Agent
The first step in buying a house is getting a credible real estate agent who safeguards your interests till the closing. Unfortunately, many people mistake skipping an agent and face serious problems. A real estate agent helps you realize your dreams of buying a home. He helps you with making a selection from the listings and visiting the homes with you. With his experience, he enables you to find the right house and allows you to write a winning offer. In addition, a good realtor will allow you to negotiate the price of a home.
Reveal The Actual Budget to Your Agent
Never hide your actual budget to buy a home from your real estate agent; many people make this grave mistake and think their agent will buy them the most expensive house with that budget. That is not the case. On the other hand, understating, a budget can make you miss a perfect home. If you are not transparent with your real estate agent about your house budget, he will not be able to find the ideal place that fits your requirements.
Research About Mortgage & Lenders
Another mistake many people make when buying a house is going for the first mortgage lender they come across. Doing so can deprive you of many better loan options in the market. Getting a loan financed requires many forms and paperwork to be processed. This overwhelms and discourages home buyers from seeking other mortgage options. In this case, getting in touch with a mortgage broker may be a good idea, where he will present you with options from a lot of intermediary lenders and help you finalize the one that best fits your needs.
List Down the Musts and Wants in Your Requirements
Many first-time homebuyers are hooked on the terms perfect and dream house. Unfortunately, there may be no such thing as a perfect dream house. Instead, focus on what is essential for you to have in a home. The list can be divided into musts and wants to identify what is absolutely necessary and what you can let go of if a suitable house without it comes along. This listing process takes you closer to the home that best fits your needs.
Keep Your Offers Reasonable
Throwing lowball offers will not get you a $400000 house in $200000, so stop doing that. You want a good bargain, but throwing ridiculously low offers may lose you that house that fits your requirements. Real estate agents say homebuyers’ biggest mistakes are making an offer too late or throwing in meager offers.
Get A Home Inspection
Many buyers don’t get a home inspection done after making an offer for a house they are serious about. Many buyers try to save a few hundred dollars by skipping the inspection. This, by far, can be the gravest mistake they make. A home inspection is crucial to the purchase of a home. It works best in the buyer’s favor and safeguards him from future losses. A home inspection gives a transparent picture of the present condition of a house. This allows the home buyer to know what he is getting into. Real estate inspections are integral to safeguard the interest of all the parties involved. If you need a Home Inspection in Atlanta, get it done from Champia, Colorado’s most credible home inspection company.
Wait For Loan Approval
You need the financer to do your background check to get your mortgage. Don’t rush into purchasing till your loan is approved. Next, a mortgage lender looks at your history and past loan amounts. Finally, your loan needs to go through underwriting to get approved. An underwriter looks at your credit score from the major credit bureaus.
Keep Closing Costs in Mind
Many buyers forget to keep a budget for closing costs, which usually totals 2-7% of the total home price. A mortgage lender will give you an idea of your closing cost, usually from 2-7% of the total home price. The home buying process takes a lot of mental and physical involvement of the buyer; as a result, many buyers are caught off-guard with the added cost of closing in the end. Making a list of each and every cost before you even start searching for homes will give you a better idea if you are ready to make that huge purchase.
Also read: 6 Ways to Cut Kitchen Renovation Costs
Falling in love with a home, at first sight, is easy, but getting through the buying process is usually a challenge, especially for first-time buyers. Take help from professionals in every field, whether the realtor, lender, or home inspector. Following these excellent tips shared above will make the long process of buying a home more manageable.