BUYERS: 10 Mistakes that Home Buyers Make That Can be Avoided

one Using the wrong loan type and not taking advantage of local grants and programs. Make sure you talk to an experienced Realtor that will set you in the right direction. Not all lenders are licensed or qualified to take advantage of local programs. Of course they will not tell you there is a better product out there so do your research.
two Waiting too late to start their home search. You need to give yourself 3-4 months before the end of your lease or start of new job to make sure that you have enough time to find the right home at the right price.
three Not understanding closing costs. Buying a home is more than just a down payment so make sure you understand all the costs and fees involved in purchasing. See this blog post:
four Skipping a home inspection to save money. Never a good idea.
five Hiring an inexperienced Realtor or mortgage lender out of obligation to a friend or family member. This can be a tough decision but it’s probably the most important financial decision of your life. Ask your friend or family member for a referral so they can be part of the process and share in your experience.
six Buying a home that’s simply too far away. This is a mistake I see far too often. Make sure you think about your future when buying a home because there is one thing you cannot put a price on and that’s… time. If you have to travel over an hour to work and you have a family think about those 2 hours a day and how important they are.
seven Buying a “starter home.” Back in 2005 many people thought they were going to buy a starter home (including myself) and when the bottom dropped out they were stuck. I give every buyer the same advice; “Do not buy a home that you wouldn’t be happy in for 10 years.” There are no guarantees where the market and home prices will go so make a smart decision.
eight Spending the maximum amount on their preapproval. Your purchase should be made on the monthly payment and not the final purchase price of the home. Don’t leave yourself “house poor.”
nine Not starting the pre-approval process early enough. If you are unsure of your credit circumstances and savings make sure you start working with a reputable mortgage lender early in the process. Many credit issued can be resolved in just a few months but don’t wait until it’s too late.
ten Having unrealistic expectations. I have buyers that have been looking for over 3 years for the “perfect home.” In those 3 years they have spent over $30,000 on rent and could have made that home that wasn’t quite perfect more than adequate. Be realistic with your wants, needs and expectations so you don’t drive yourself crazy!

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