The Ten Most Common Mistakes Home Buyers Make

Most Common Mistakes Home Buyers Make

Buying a home is never an easy task. It takes time and effort to plan, but it can also be exciting! It's not every day that we make this kind of investment, which means many people can find themselves feeling anxious or overwhelmed at times during the process. 

Here are a few home buyer mistakes to avoid so that the journey to homeownership can go smoothly. 

Common Mistakes Home Buyers Make

Bypassing a Real Estate Agent

The housing market is a competitive one, and you might be wasting your time running around to open houses. Hiring an agent will ensure that all of the information available on local listings gets put into perspective for what they offer in terms of value, as well as other factors such as price range. They'll have access to information about all neighborhoods and properties in town, which means they can save time by cutting out any guesswork from finding that perfect place. A real estate agent can help you negotiate a reasonable price for your home. As a matter of fact, they can help you avoid the mistakes that are listed on this page. 

Not making pre-approval a priority

The pre-approval process is an important step in the mortgage application. This way, you can make sure there aren't any credit issues or outstanding debts that would prevent approval for your loan before going through all of the paperwork. Going through the pre-approval process first gives you time to correct any errors so that when it comes down to applying for your mortgage, everything will be in order and ready. 

Forgetting the Closing Costs 

You may be surprised to learn that you'll need to pay closing costs on top of your down payment, and the seller will also get their share. Your lender might charge an origination fee when applying for this loan. You can expect appraisal fees as well if there is any inspected property involved with buying a home. The buyer and seller split these escrow fees in order for them to go through with the purchase agreement. If the seller has paid for pre-paid taxes, HOA fees, or other expenses they will be pro-rated from the date you take the title. Ask your agent or lender for an estimate of closing costs so that there are no surprises come settlement day! 

Passing on a Home Inspection  

Hiring a home inspector is worth the investment. Not only will they check your entire electrical system, but also breakers boxes and HVAC units to make sure everything's running smoothly for you! You won't regret spending this much on an expert who will save you thousands of dollars in repairs down the line. When you get an inspection done on your home, it's important to know the difference between major and minor issues. If something is amiss during an inspection, you have every right and responsibility to ask that it be fixed before moving into your new home. You want to make sure the home is in the same condition as when the offer was made. 

Neglecting documents required for your mortgage 

The process of buying a home is never easy, but it can be made much more complicated if you do not provide all the documentation that an underwriter may ask for. The underwriter will ask for tax records, bank statements, W-2s, and 1099s. If you don't provide this documentation, your mortgage may be delayed or denied! One of the most common complaints from buyers is about having to respond promptly with all their paperwork.  

Deciding against the Home Warranty

If you are buying a resale home, it may be worthwhile for you to purchase a home warranty. Appliances often stop working or leaking within the first year of owning them, which means that repair costs can really add up. It's a great way to ensure that all repairs are done at minimal cost and without any hassle on your end!

Quickly glancing over the Homeowner’s Association documents 

The Common Interest Community or HOA documents can be lengthy and boring but they contain rules that will affect what you are allowed to do in your new home. They may cancel the contract if these guidelines cannot follow by-laws, so it's important for buyers to pay attention to these documents!

Fixating on the House & Not Considering the Neighborhood

Buying a house is an exciting process, but it’s not all about finding your dream home. One of the most important decisions will be selecting which neighborhood best suits all those requirements and priorities, so take some time to research what's available in each area carefully! 

Extras are often overlooked 

The cost of homeownership is often more than just your monthly mortgage. It's easy to forget the extra costs of owning a home. There are so many things to think about when moving into a new home, but it's easy for some of those pesky little details to get overlooked. It's not just the mortgage, interest, and insurance you'll be paying when buying a home. There are many reasons to buy a new construction home, and one of them is that you may save money on maintenance. New appliances, HVAC systems plumbing, and electrical upgrades can be found on most homes built today as opposed to those with older models- not just resale properties!

Skipping the Final Walk-through 

The final walk-through is a chance to make sure everything's still in place and working. The final walk-through is not a full inspection. You need to verify that appliances, window treatments, and other items agreed upon are still in place; make sure doors or windows didn't get damaged during move out process.  

Conclusion: Mistakes Home Buyers Make

One of the most fulfilling investments you can make is purchasing a home. Choosing an experienced realtor and lender will help you make the buying process as seamless and stress-free as possible. Now that you know the top homebuyer mistakes to avoid, good luck and happy shopping!

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