7 Home Buying Mistakes That Could Cost You Your New Home
No matter how attentive you are, some home-buying mistakes do happen. Maybe you got some bad advice, the market is falling, or it is just plain bad luck. However, there are some mistakes that can be avoided with a little common sense. Watch out for the easy-to-avoid mistakes below and keep your home!
- Attending free seminars
It may sound like a great way to learn about real estate, but free seminars usually have a catch that costs you more than your time. In a few minutes, you are likely to find yourself buying books, audios, and other discounted services hawked by seminar gurus.
- Choosing bad agents
Holding a real estate license does not make a real estate agent good. Some know the territory and keep your best interest in mind while many are poorly informed or ensuring the seller gets the most from the sale. Make sure you interview your agent and get one that meets your standards. Do not just get the cheapest or most eager one you can find.
Only buy what you can afford. If you have to spend all your savings for your down payment or borrow money from relatives to cover your closing costs, you are spending too much.
- Refusing professional advice
It is not easy to understand your mortgage and loan agreement. Researching online and reading books on your own always helps but hires a lawyer and accountant for final advice.
- Going for low-cost loans
These may sound good but these exotic loans often start at low rates that balloon over time.
- Choosing the wrong location.
A terrific house in a bad neighborhood is a bad investment. Check with the police department and talk to the neighbors before you buy any property. Walk the neighborhood at different times of the day and make mindful observations. Compare prices, too.
- Not doing a home inspection
Home inspections are your best tool for spotting problems inside a home, especially those that are covered or hidden. Get a qualified home inspector and check every system, appliance, and pipe.