Perhaps you have worked with a rogue realtor or overpaid for a house. You could also fail to notice some foundation issues when inspecting a home. A lot of shit can happen when buying a house. Even experienced home buyers often make costly mistakes. Below are some of the mistakes to avoid when buying a house whether it’s your first or tenth time.
Interview Only the First Realtor You Find
Online property listings have increased the accessibility of homes for sale. While it’s still wise to research online, we should ensure we have a realtor by our side before we buy houses. You won’t incur any upfront cost for using an agent of the buyer since the seller pays the commission of both the buyer’s and seller’s agent. An experienced real estate agent can help customers set realistic expectations and guide them through the path of buying their dream house. However, don’t make the mistake of interviewing only the first real estate agent you find.
Failure to Research the Available Financing Options
The next step after finding your dream home should be to meet with a home loan provider or mortgage lender to discuss the amount you can afford. Research ensures you don’t waste a lot of time looking for houses that aren’t within your budget constraints. Your goal is to get a pre-approval letter from a mortgage lender after signing a purchase agreement.
Bids in a Seller’s Market
Every home buyer in a market where demand exceeds supply wants to score a win-win deal. Buyers often compete for scarce properties when they are more than the available houses on the market. As such, homeowners must be willing to offer a full list price to retain a competitive streak in a seller’s market. Another way homeowners can win a bidding war is to reduce contingencies in their offers as much as possible. That helps tug at the heartstrings of the seller and reassure them that you will seal the deal. You can gain an offer edge by merely writing a letter about why you chose a specific home.
Misunderstanding Your Mortgage Lender’s Closing Disclosure
Clients should ask their home loan lenders to provide closing costs and final loan terms at least three days before transacting. While the seller is responsible for the closing disclosures, the buyer often takes the lion’s share. Moreover, closing costs can vary across regions, but they usually range from 2 to percent of the value of a house. Fortunately, home buyers can get a rough estimate of the closing costs from their mortgage lenders once a home seller accepts the deal. That creates an opportunity for home buyers to budget within the interim between acceptance and sealing the deal.
Mortgage lenders often re-evaluate the creditworthiness of their clients to make sure no financial change has occurred since their pre-approval. That means a buyer can’t open new credit accounts or take another loan while he or she is under contract on a home loan. Your mortgage lender might even raise the interest rate or reject your loan application.