Purchasing a home is a major decision, even if you're looking for a rental or a second home. You'll want to make sure you take the time to do it right. Below are a few common mistakes that you'll want to avoid when you start your real estate search.
Not Checking Out the Neighborhood
Where the home is located is just as important as whether or not you like the house the realtor is showing you. There are a few important questions you'll want to ask yourself. Is it near good schools and does it provide easy access to grocery stores and doctor offices? What do the other homes in the area look like? Is it an up-and-coming neighborhood, or are all of the buildings in need of repair? Don't forget to consider local crime reports as well.
Taking on Too Big of a Mortgage
Taking on a mortgage that is more than you can handle will mean financial stress, and possible even a foreclosure down the future. One way to ensure this doesn't happen is to contact a few lenders and get a pre-approval letter. The letter will state how much home you can afford based on the documents and information you provided to the lender.
Not Taking Into Consideration Additional Costs
Your mortgage is not the only cost associated with home buying. In addition to taxes and home owner's insurance, you'll also be required to pay appraisal fees, notary fees, and credit report fees. If you need anything extra, such as a flood certification, you can expect to pay that as well. Ask your realtor for a list of possible fees that you would be responsible for paying.
Neglecting the Home Inspection
Although you may fall in love with a home, you should never neglect the home inspection. A professional will be able to take a in-depth look at the home and ensure that it is in proper working order. If he or she notices any issues, such as a leak in the pipes or faulty electric, then you can either require the seller to fix it or back out of the deal.
Buying a Home That Will be Hard to Sell Later
Perhaps the biggest mistake of all is purchasing a property that will be hard to sell later. Take a look to see if there is anything that would deter someone from buying the home. This may include being located near a set of railroad tracks, or having a steep slope that is hard to mow in the backyard.
Taking the time to do a little research and learn where you stand financially will go a long way in preparing to buy a home. Following these tips is a great way to make sure you end up with the house of your dreams and no regrets.
