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Avoid These Homebuyer's Mistakes

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By : Sonia Smith    99 or more times read
If you find you are now ready to take the plunge to buy a new home, whether this is your first time or moving up in the world, you could meet possible drawbacks in the process. In today’s market where houses are selling faster than you deem possible, more and more buyers are prone to make mistakes. If you wish to buy a house now, take precaution and avoid these buyer mistakes:

  1. It is wrong to purchase a home that is beyond your capability. Most brokers will tell you the amount you can afford to borrow, but not really the price that you can afford to pay. You should consider your children and their school expenses. Think of the effect of the purchase on your monthly bills and expenses.

  2. Another homebuyer mistake to avoid is choosing the wrong mortgage. These days, people are trying to rush into mortgage because sellers mostly consider only offers coming from those who are pre-approved of a loan. Select your mortgage carefully, like those with fixed-rate or adjustable mortgage rates. Short-term mortgage costs more in monthly dues.

  3. Selecting the wrong area or community when buying a house. While some places are just too expensive for your budget, it does not mean that you have to settle for the cheapest locality. Choosing the wrong location will not give you fulfillment in your home buying. It would also be very difficult for you to sell the home later on if it is located in a depressed area.

  4. It would be a mistake to buy a home without a better idea of how homes really cost. A good way to determine if you have a good deal is to compare similar homes in the area. You could ask your realtor to present to you a comparable market analysis that consists of a list of homes sold in certain areas, their prices, dates sold, general condition of the home, number of rooms and bathrooms, the size and added home features.

  5. Do not allow home buying to be more complicated by selecting the wrong real estate agent. Referrals from family and friends are better when looking for an agent. The right agent for you should know and understand what you need and your financial standing.

  6. Another home buying mistake is failure to check out the neighborhood. Usually, buyers spend the weekends to search for a property, nevertheless, is it necessary to go back and study the area on weekdays and during nighttime. Consider if the neighborhood spends weekends with the stereo blaring away or else the area is on a main thoroughfare that fills up with cars during commute time.

  7. Failure to consider resale when buying a house. When you go out house hunting, it is easy to forget what it would be like if you sell the home later. It is important to set yourself as a seller when looking at homes.

  8. Purchasing the most expensive house in the area could pose a problem since lower values of homes around will dampen your home. Remember that usually; if you buy a $500,000 home, it is only natural that you want to have similar valued homes near you. Avoid buying a home that is fifty percent more than homes around the area.

  9. Failure to do a home inspection could jeopardize your investment. A home inspection is necessary if you do not want to find out later that the home is filled with pests or the electrical system is exhausted. Home inspections typically costs between $300 to $500 and includes checking on the air conditioning, heating, plumbing, electrical, structure, roof, walls, drainage, foundation and the basement and the garage.

  10. Unable to consider the costs of closing. Closing costs could reach up to five percent of the purchase home price. Your lender should give you an exact estimate of the costs of closing, which includes loan origination, escrow, title fees, legal costs, insurance, property taxes and recording fees to the deed and notary fees.
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