Top Mistakes to Avoid Making When Buying a Home
Buying a home requires a lot of planning and is a significant decision for most individuals due to the investment that it requires. Due to the complexity of the process, it can be easy for buyers to make mistakes along the way that can hurt their investment long-term. If you’re planning on becoming a homeowner, there are a few top mistakes to avoid making to protect yourself.
Buying a House You Can’t Afford
It can be easy to get in over your head when shopping around for a new house. You may fall in love with more square footage or a pool in the backyard, which can make it easy to exceed your budget. Calculate your budget in advance and prevent it from exceeding 25 percent of your take-home pay. The overall cost of owning the home includes property taxes, interest, HOA fees, and private mortgage insurance. Avoid looking at homes that aren’t in your price range to avoid purchasing a property that will become a burden over time.
Failing to Get Preapproved
Many people jump-start the home-buying process by searching for their dream house before they’ve gotten preapproved for a home loan. Unfortunately, sellers don’t take buyers’ offers seriously if the other party isn’t already preapproved for a loan. It can also mean losing out on a home to another buyer if you have to wait for a mortgage company in Las Vegas to review all of the documents and agree to the loan. Make it a point to get preapproved in advance to ensure you can present the seller with the preapproval letter with your offer.
Not Hiring a Real Estate Agent
Many people assume that they can save more money if they shop for a new house themselves without the help of a professional. Failing to hire a real estate agent means that you may not have as much negotiating power after making an offer or that you don’t become aware of certain houses that are on the market. Plus, most sellers cover the commission of buyers, which means you won’t be spending extra money on the services.