Five mistakes you must avoid when buying a house
When I was working as a Real Estate agent I realized that most people who wanted to buy a house were really not ready to do so. Almost always (with few exceptions) they expected the agent to do everything for them. What they didn't understand was that being the biggest investment of their lives, they needed to be more in control of the process instead of relying on other people to do all the work for them.
Over the years I realized that there were 5 mistakes that most buyers were making when purchasing a house. Since these mistakes could potentially cost you many thousands of dollars (and many headaches too), make sure you read on and take notes so you can avoid them and have a painless home-buying experience.
Mistake #1: Not knowing how much "house" you can afford.
Everybody knows that with the house comes a (sometimes large) mortgage payment. But you also need to consider all the extra expenses that come along with it. Always leave room for unexpected repairs and expenses since you are now your own landlord. Set up a budget with all your current expenses, and see how much you can comfortably pay for mortgage, taxes and insurance. Not leaving room for other expenses could spell disaster sooner or later.
Mistake # 2: Not checking your credit report for errors ahead of time.
Probably more than 90% of buyers never do this, and by the time they apply for a mortgage loan is already too late. The result is they will potentially end up paying tens of thousands of dollars in extra interest (over the life of the loan) because of their lack of preparation.
Make sure check your credit report and start working on improving your score so you can get the best possible rate months before you start looking for a home. You'll be so glad you did!
Mistake #3: Picking the wrong real estate agent.
A good agent will:
-Be a full time agent with years of experience
-Be very protective of your interests and be an excellent negotiator
-Will not show you any houses unless you are pre-approved for a mortgage loan (will not waste your time showing you houses you may not qualify for).
The best way to find an agent is to interview several of them and ask for referrals, and then call the referrals to see if what the agent told you is true. Keep in mind this is one of the largest investments you will ever make, so it is critical that the person that will represent you during the transaction is a great negotiator.
Mistake #4- Not doing your own research
You need to know exactly what kind of house you want, exactly in what area of town your future house is, and exactly how much houses go for in that area. You also need to become very familiar with that area, and once you find the house you like, ask the neighbors what they think about the area. You'd be surprised at what you can learn from them.
Mistake #5- not hiring a home inspector
Many people say they don't need a home inspector because "uncle Johnny is a handyman and he can tell me if there is something wrong with the house", or similar excuse not to pay $300-$500. The truth is that hiring a qualified home inspector could very well be the best $300-$500 you could ever spend!
A home inspector is a professional trained to see problems ahead of time that most other people will only discover when it's too late. He or she will give you a report with everything that is wrong with the house, so you can decide whether to go ahead with your purchase or not, or ask the seller to repair certain items before the transaction closes.
There are of course many other issues to consider, but these 5 are the most common ones. Make sure you read more tips and information on our blog at http://www.GetOutOfDebt101.com/blog today.
Over the years I realized that there were 5 mistakes that most buyers were making when purchasing a house. Since these mistakes could potentially cost you many thousands of dollars (and many headaches too), make sure you read on and take notes so you can avoid them and have a painless home-buying experience.
Mistake #1: Not knowing how much "house" you can afford.
Everybody knows that with the house comes a (sometimes large) mortgage payment. But you also need to consider all the extra expenses that come along with it. Always leave room for unexpected repairs and expenses since you are now your own landlord. Set up a budget with all your current expenses, and see how much you can comfortably pay for mortgage, taxes and insurance. Not leaving room for other expenses could spell disaster sooner or later.
Mistake # 2: Not checking your credit report for errors ahead of time.
Probably more than 90% of buyers never do this, and by the time they apply for a mortgage loan is already too late. The result is they will potentially end up paying tens of thousands of dollars in extra interest (over the life of the loan) because of their lack of preparation.
Make sure check your credit report and start working on improving your score so you can get the best possible rate months before you start looking for a home. You'll be so glad you did!
Mistake #3: Picking the wrong real estate agent.
A good agent will:
-Be a full time agent with years of experience
-Be very protective of your interests and be an excellent negotiator
-Will not show you any houses unless you are pre-approved for a mortgage loan (will not waste your time showing you houses you may not qualify for).
The best way to find an agent is to interview several of them and ask for referrals, and then call the referrals to see if what the agent told you is true. Keep in mind this is one of the largest investments you will ever make, so it is critical that the person that will represent you during the transaction is a great negotiator.
Mistake #4- Not doing your own research
You need to know exactly what kind of house you want, exactly in what area of town your future house is, and exactly how much houses go for in that area. You also need to become very familiar with that area, and once you find the house you like, ask the neighbors what they think about the area. You'd be surprised at what you can learn from them.
Mistake #5- not hiring a home inspector
Many people say they don't need a home inspector because "uncle Johnny is a handyman and he can tell me if there is something wrong with the house", or similar excuse not to pay $300-$500. The truth is that hiring a qualified home inspector could very well be the best $300-$500 you could ever spend!
A home inspector is a professional trained to see problems ahead of time that most other people will only discover when it's too late. He or she will give you a report with everything that is wrong with the house, so you can decide whether to go ahead with your purchase or not, or ask the seller to repair certain items before the transaction closes.
There are of course many other issues to consider, but these 5 are the most common ones. Make sure you read more tips and information on our blog at http://www.GetOutOfDebt101.com/blog today.
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