Buying a home can be a lengthy process. With so many steps involved, it’s easy to make a few slip-ups. Not all of these are complete blunders, however there are a couple of mistakes you should definitely take care to avoid.
Skipping the home inspection
Home inspection is often recommended when you’re purchasing a home. But if the property’s brand-new or recently remodeled for the sale, do you still need to have it inspected by a licensed professional?
Whether you’re buying a resale or new construction, a home inspection is a must. The added scrutiny will help ensure the property is fit for sale (and appropriately priced.) Issues found are not necessarily deal breakers? it will help you understand the property and even negotiate a better deal. The point is, it’s better to learn about these problems now than suffer the consequences later.
Making big purchases on credit after submitting a loan application
We often recommend home buyers to avoid buying big-ticket items on credit after applying for a loan. Here’s why.
Making purchases on credit after submitting a loan application can significantly alter your credit rating and debt-to-income ratio for the worse. Although your ratios were perfectly acceptable when you applied for a loan, lower numbers can disqualify you from completing the application.
If the purchase is absolutely necessary, pay it in cash. But if you can hold off the purchase, wait until the loan is finalized.
Not getting everything in writing
During the home buying process, you might find yourself encountering additional agreements. It might come in the form of extra items the seller wants to include with the home, to important repairs and upgrades. Some of these come at the most inopportune moments as well, you’ll just find yourself saying “yes” or “no” without putting any of these into writing.
In such cases, take a step back. If it needs your answer as soon as possible, give it, but don’t forget to ask for documentation. As much as possible, make sure everything included in the sale is put into writing. This will help you out in the future should disputes or confusion arise.
Hiding your real budget from your agent
Some home buyers understate or overstate their budget. The reason? We’re not sure. What we do know is that doing so can complicate your home buying experience.
For one, understating your budget will lead your agent to find homes that are not necessarily the ones you’re looking for. Meanwhile, exaggerating your budget can lead to you looking at homes that are far beyond what you can afford. Aside from the lifestyle clash, it’s also precious time wasted.
Most of all, not being honest about your financial capability can make you miss out on a great house that actually fits your budget. And it might be hard to recover from that regret.
In lieu with this, check out our tips for first-time home buyers!