Buying a home is generally a complicated process, especially for a first-time buyer. So it pays to heed advice from those who know best about it rather than tackling this transaction blindly.
We have listed the most common mistakes committed during the home buying process, along with our tips on how you can avoid them:
Not getting loan pre-approval
The first step in starting the home buying process is through getting pre-approved for a home mortgage. A lender will pre-approve a potential home buyer by showing that the buyer could afford mortgage payments up to a certain amount. This reassures the seller of the buyer’s financial stability, as well as their serious intent to buy. The pre-approval can also be the deciding factor between who wins in a bidding war.
Not getting a Realtor’s services
Get advice – early and often – from an experienced and successful Realtor. A Realtor can help you get a home loan, assist in interpreting the contract for the sale, negotiate for the purchase price, and spot unscrupulous tactics by either the seller or the seller’s agent. They can be absolutely invaluable in the home-buying process.
Making an emotional offer
When it’s time to make an offer, do so based on information, not emotion. No matter how much you like the home, base your offer on what your information tells you it’s worth. Give some consideration to the prices of comparable homes in the area.
Not getting a home inspection
A home can look great with new gutters, shutters, porch railings, new paint, new siding, or even new driveway blacktop. But modest improvements can distract attention from fundamental, structural problems ina home like a failing HVAC system, a leaky roof, or a cracked foundation. The reverse is equally true; a home that looks rather rough on the outside can have a sturdy and sound foundation on the inside. Who knows, it can be of great value with some modest work.
Opting for a 30-year mortgage
A home purchase usually means making a large loan, so getting the best interest rate possible is critical. As part of the shopping process, see if you can get a lower interest rate with a shorter mortgage term, like 15 years instead of 30 years. The monthly payments will be higher, but you’ll pay less interest and accrue more equity over time.
Relying on credit cards
While you’re trying to get to the final steps of buying a home, don’t hamstring your credit. Stay away from large purchases using your card and don’t open new lines of credit or credit cards. It might even help to close some of your existing accounts. You want a potential lender to believe you can afford to make the mortgage payments.
Losing your cool
Your personality may be a complicating factor in negotiating the deal to buy a home. If you have the potential to be impulsive, have a hot temper, or get easily off-track, take someone with you who knows you well and can help keep things on an even keel.
Buying a home can be difficult, but given the right strategies and an able guide to help you out, your home buying experience can be more hassle-free. Let us be that guide for you to get the home of your dreams in the prime areas of Arizona. We are Aeris House Properties, Arizona’s best real estate experts. Call us today at 602-466-9771 or drop us a note at Info@AerisHouse.com.