Buying your dream home is great excitement and challenge at the same time. You are satisfied in your heart that there will be someplace to call your own, but there are lots of critical decisions to be taken. While it is quite natural to sway away with a luring deal coming your way, it is always best to act smart to avoid any sort of remorse later.
If you have been into home buying before, the process is less overwhelming for you. However, for the first-timers, it is highly nerve-wracking. People often commit costly mistakes when they have no or little knowledge about the market.
To help you guide further, here is a list of three usual mistakes that buyers make when investing in a property and advice on how you can avoid them:
Ignoring your financial status
There is not even a single individual on the earth who doesn’t want to get a big home but can he/she afford it – that is the question every time. Before investing in a home or any other property, you have to be clear in your mind whether you will be able to dedicate enough budget towards its monthly installment, maintenance, etc.
What your bank says you can afford and what you can actually afford need not be the same. There may be other liabilities on you that need to be given priority.
Tip: Always have a budget in hand. Consider all your important expenses and subtract this total from your take-home pay. This way you will know how much you can spend on your home/property each month.
Not getting pre-approved for a loan
It is important to have your loan pre-approved before heading out for house hunting. In some markets, housing inventory is limited as there are more numbers of buyers than the numbers of homes. And sometimes in a competitive market, you as a buyer can lose the chance on getting that home or property if you aren’t pre-approved or have skipped the mortgage qualification.
Moreover, being pre-approved signifies that you are a serious buyer and your finances are sufficient to get you through the deal.
Tip: Before going to buy the gorgeous house you have seen lately, make sure you have an underwritten pre-approval. A good mortgage specialist can help to figure this out for you.
Overlooking the actual quality of home
Minor cosmetic fixes are some smart ways that sellers resort to trick the buyers’ minds. They portray the house as eye candy by using beautiful finishes, fixtures, and other superficial details. People get so engrossed in these minimal upgrades that they forget to focus on bones and structure of a house that will help it to pass the test of time.
A point here to note is that many homes can be decorated to look pretty on the outside but may not be well taken care of inside. You may see attractive granite counters and stainless steel appliances but it will be a deep analysis of the house structure that will present you the real picture.
Tip: Hire a professional home inspector to scrutinize every nook and corner of the house you wish to buy to catch all problems that your eyes may miss.