Buying a house for the first time can be an emotional, exciting and daunting experience at the same time. You are probably making one of the biggest investments of your life, and constantly praying for everything to go as planned. At this point, it is best that you learn from the mistakes of others so you can avoid those same errors at the time of finalizing your home buying deal. Here are the top 5 problems home buyers often overlook when buying a home.
Top 5 Common Home-Buying Mistakes
1.   Confusing Prequalification with Preapproval
One of the biggest mistakes most first time buyers make is confusing preapproval and prequalification. The first thing you want to know here is that prequalification is a less thorough process whereas preapproval is much more in-depth. At the time of prequalification, you will only be asked general questions about your salary, and other things that can affect your purchase. Most importantly, your social security information is not needed at the time of prequalification. On the other hand, preapproval is a much more in-depth process wherein the lender will pull your credit score as well.
2.   Paying a Small Down Payment
Just because you can pay mortgage every month does not mean you should rely solely on this process. Your down payment can have a huge impact on how easily you are able to afford your house. When you make a big down payment, you get a lot of relaxation on your monthly mortgage payments. On the other hand, a small down payment means you will be paying a large sum every month.
3.   Not Hiring an Agent
Sometimes, your friends, family and colleagues can convince you to not take the help of a real estate agent. They make it seem as though a real estate agent is always going to sneakily make you pay a lot of money to him/her. What you might not realize is that relying on the home seller’s real estate agent is a huge mistake. People who buy housesfrequently for investment purposes understand that a seller’s agent will always favor the seller. Having one on your side can save you not only from unnecessary expenses but legal frauds too.
4.   Skipping Inspections
No matter how worse the situations are, you must never agree to skip home inspections. In markets where there are a lot of buyers and very few sellers, homebuyers are ready to shell out cash for houses without an inspection to appear more attractive to the sellers. What they don’t realize is that a house that has been owned by someone for years can have damages that could cost thousands of dollars to fix. They must add those costs to the price of the house too.
5.   Not Building Credit before Buying
According to Corey Tyner of Cash for Houses Phoenix, there are several ways for you to build your credit. In fact, you could use your credit cards smartly to boost your credit score. You don’t have to be impatient when it comes to buying a house. Give yourself some time to boost your credit score and in the meantime, you can build a large down payment too. A solid credit score means your preapproval will be easier, and buying your dream home in the market will be much more convenient for you too.
If you are a first time buyer, keep these points in your mind at every step of your home-buying process. Never let overconfidence overcome your senses. It is always advisable to have professionals on your side when making such a crucial investment of your life. The best you can do is research thoroughly online and take advantage of customer reviews before selecting your real estate agent.
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