Avoid these 5 mistakes when buying a home
Buying a home can be one of the most difficult, yet most significant investments you can make in your life. Especially in California, it can be a complicated process. Learning the different terminology, laws & regulations, timelines of each individual task, can all be overwhelming. However, when it comes to one of the largest investments you will make in your life, it is important to find a great team to make it as easy as possible and make it a pleasant experience. Unfortunately, if you are a first time home buyer you don’t have the experience to understand the entire process, but if you have done this before it does become more of a familiar process as long as you have learned from each experience how to make the transaction more efficient, and effective. In this blog we will be discussing the common mistakes homebuyers make when purchasing a home.
Don’t apply for other lines of credit.
Most homebuyers get a loan to purchase a home, being that a home is a large purchase, it is recommended to stay away from opening others lines of credit when you are trying to get ready to purchase a home. Applying for a loan to purchase things such as a new vehicle, furniture, or even a new credit card can impact your pre-approval, create issues for the underwriter, and worst of all affect your mortgage approval. Your credit score gets “dinged” when you open a new line of credit.
Get a Pre-Approval!
We completely understand how exciting it can be to buy a home, especially if this is your first one. However, the last thing you want to do is get your hopes up and not know if you can afford it! To prevent that the first thing you should do is get a mortgage pre-approval. It’s very important to understand the numbers and ensure that you can afford your monthly payments before making such a big commitment. Be realistic and don’t overextend yourself. The best benefit of doing this as well is that you will be seen as a stronger buyer because you are already pre-approved. Stay ahead of the game!
Hire a good Real Estate Agent.
Finding a good Realtor can mean the difference between you having a pleasant experience on your home purchase or making it a process you may not want to experience ever again. Although you can find a lot of information online nowadays at your fingertips, a lot of that information may not apply to the state you live in or the current market conditions. A Real Estate agent will not only advise you through the entire process, they will be your advocate to ensure you have a successful transaction. A good Realtor will educate you, they will advise you who else you may need to consult, they will give you great insight into current marketing conditions, trends, neighborhoods, and best of all sometimes they have access to properties before it even goes on the market. Take your time reading reviews about your agent, see their social media pages to make sure they are active on the market and they are doing everything in their power to give you an edge whether you are selling or buying a home. Don’t forget, you will be spending a lot of time together, so it’s important you find the right person that meets your personality and your goals so you can have a pleasant experience.
Have options. Make a business decision.
As we mentioned previously, having a good Realtor can also help keep your emotions in check. When purchasing a home it is easy to “fall in love” and get emotionally invested in a property. However, this is not a good place to be when you only think of it like that due to you may end up doing anything to get a property which can lead to overpaying or making poor decisions. Not only will you not get the best deal, but it may also end up costing you in other ways in the long run. This is why having one or two more options of other homes you may be interested in also puts you in a good place so you can make a good business decision and negotiate and get the best value for your investment.
Don’t skip a Home Inspection!
Even if you purchase a home “as is” it is crucial to invest in a Home Inspection. The Home Inspection process is one of the most important parts of purchasing a home. Likewise, hiring an experienced, thorough, and educated Home Inspector will help you make an educated decision, as well as give you an edge when negotiating. Whether you are purchasing a home that is new construction, “new”, or old. The Home Inspector will help you identify key areas of the home that may need correction, improvement, as well as show you good helpful tips about your home. Believe it or not, when buying a new construction home, the builders are trying to finish the homes as quickly as possible to be more profitable in each transaction. This may cause certain areas of which they subcontract to speed up processes that shouldn’t be sped up such as your electrical system, heating & air conditioning, plumbing system. It is easy to get caught up with the “eye candy” in a home. The seller may have invested well into the esthetics of the home to appeal to buyers who are looking for “new trends” in real estate or appeal to your style. However, this is why it’s even more important to have a Home Inspection to spend hours checking all the components of your potential home. We can help you make this experience pleasant by helping you in your purchase process and identify which areas are more urgent than others, which you can ask to negotiate, and once you close you will have a detailed report of the areas you can work on improving and not neglect for a healthy home.
Call today to schedule your Home Inspection in Riverside or it’s surrounding cities. We are here to help you make your largest investment a smart one.