Whether you’re a first time homebuyer or you’ve shuffled through multiple homes and mortgages already there are a few mistakes that can come back to haunt you when you buy. Here’s a list of six common errors that you might want to avoid…
Mistake #1: Not knowing how much they can afford to pay for a house before they make an offer.
You can avoid this by getting pre-qualified for a mortgage from a lender, so you know in advance exactly how much you can afford.
Mistake #2: Not finding out in advance whom the real estate agent represents.
You can avoid this by asking your REALTOR®. Most people think their agent is working for them. But unless the agent is working as your buyer representative, he/she represents the seller.
Mistake #3: Not realizing that the wrong mortgage can cost thousands of dollars in unnecessary interest and taxes.
You can avoid this by consulting with a mortgage consultant, accountant, and/or financial planner before making a final decision on which mortgage to choose. CPAs can tell you the long-term effects on your income.
Mistake #4: Not discovering hidden defects before buying a home.
You can avoid this by hiring a professional to conduct a pre-purchase home inspection.
Mistake #5: Not knowing how debt can affect their ability to buy or refinance a home.
You can avoid this by asking your mortgage professional to help you review and repair your credit file in advance.
Mistake #6: Purchasing or financing big purchases before closing on their new home!
You can avoid this by waiting to buy furniture, appliances, a new car, a new motorcycle, etc. before you close. And not just financing them – but also paying cash for them… if you make big purchases before you close you could lose your new home.