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Home Buying Mistakes to AvoidFollow our tips to avoid common pitfalls when buying a home
There are some common errors people make when buying a home. Be aware of the following home buying mistakes so that you can avoid them yourself.
Avoid using your heart over your head
You might fall in love with a home instantly forgetting that you are making a huge financial investment and that someday you may want to sell it, only to find out, when it is too late that your home is tough to resell.
Avoid viewing homes alone
Bring your spouse, your children or a friend with you. You might miss out on some imperfections because of your excitement. Their point of view will surely be helpful.
Avoid over-extending yourself financially
It is easy to get swept up in the excitement of buying a new home. One common home buying mistake is to make an offer that will over-extend you financially. Even though you may qualify for the mortgage, it might put too much financial pressure on you. You do not want your new home purchase to add stress to your life. You should make sure the monthly payment is something you can comfortably afford. If you are thinking of getting an adjustable rate mortgage to keep your payments low, make sure you “stress test” your mortgage so you will be able to afford the highest possible payment, should interest rates rise.
Avoid looking at homes you cannot afford
Buying a home does not only mean a down payment and fixed monthly mortgages. There will also be expenses for repairs, maintenance, new appliances, furniture, window coverings, landscaping, etc. A clear understanding of your finances prevents wasted time and unnecessary stress.
Avoid viewing homes without a checklist in hand
You should have a list of everything you need and what you would like to have in the home according to your priorities.
Avoid buying a home in an unfamiliar neighborhood
Spend some time in the area and ask questions regarding criminal activities, accessibility to schools, grocery stores, churches, parks, etc. You are not only purchasing a home, you are purchasing the location as well.
Avoid buying a home on your first visit
Do not rush. Visit the home you like at least two, three or even more times, if necessary. Make sure this is the home you really want to settle in. Have a professional home inspection done to eliminate future headaches like the exterior items including roofing, heating and cooling units, attic and interior systems such as electrical, plumbing, flooring, walls and components.
Avoid letting the seller or the listing agent know you love the home
Because in doing so, they could ask for a higher price. Do not get too personal with the seller. Be friendly, but treat the transaction as professionally as possible. Remarks about changes and future repairs may not be taken well by the seller.
Avoid making significant financial changes prior to closing
Another common home buying mistake is to make some sort of financial change before closing. The approval for your mortgage is based on the financial information you provided to the lender. Buying a new car, changing jobs, or even adding to your credit card debt can affect your ability to qualify for the loan you need. Avoid making any big purchases or job changes until after you close on your home.
Avoid switching banks
Problems in the verification process may occur when you move your money to another bank.
Avoid giving earnest money directly to the seller
A title/escrow company can hold the deposit until closing day. Your contract should state what will happen to the deposit in case the transaction does not push through.
Avoid verbal agreements
Put everything in black and white. Whatever was agreed upon verbally does not count in the eyes of the law.
Avoid signing documents without first reading them
Read, familiarize, understand and then sign before finalizing your home purchase.
Avoid not planning for resale
In today’s mobile society, relatively few people stay in the same home for the full term of the mortgage. You may be selling the house yourself some day. A common home buying mistake is to forget to buy with resale of the home in mind. Be sure the house you make an offer on is one other people will like as well. Make sure it is not too close to major roads or that it does not have an awkward floor plan. In short, buy a house you are confident will be easy to sell when the time comes.
Avoid not having a final walk-through
One of the last steps before closing is the final walk-through. Many buyers make the mistake of thinking this is not necessary. It is important that all contingencies from the inspection have been taken care of, documented and re-inspected, if necessary. Make the time to have a final walk-through so you’ll be sure the home is ready prior to closing.
Avoid neglecting the little details
There is so much to do when buying a home. Don’t make the common home buying mistake of forgetting to take care of the details. You need to have your utilities changed over to your new address. Also, your phone, cable, newspaper and mail must all be changed. Make a list of all of services at your current residence and check them off as you make the change to avoid this common home buying mistake.
By being aware of these common home buying mistakes, you can avoid them and make sure your home buying experience goes as smoothly as possible.
The Valley   Sean Hahn CRS, GRI, ABR
Phone
E-Mail Us
(480) 948-5554 Mobile (602) 361-6047 West USA Realty
7047 E. Greenway Parkway
Suite #180 Scottsdale, AZ 85254
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