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Mistakes to Watch Out For While Buying a Home

Real Estate Broker/Owner with Real Living GreatWest

January 18, 2010 04:28 AM

Irrespective of whether your real estate investment is the first of its kind or not, there are always possibilities for you to face a drawback in the process. In today’s real estate market, the houses sell faster than that was seen a few years before. In such a transaction pace, you are prone to make many mistakes. So before you buy a home, take precautions to avoid these mistakes.

Know your capacity before you buy a home. A broker can only tell you the limit on the amount you can borrow and not the price your finances will afford you to pay. Only you can decide how much is affordable keeping in mind all your other expenses. In terms of financing, the mortgage you choose is a common mistake committed by home buyers. With the dilemma between fixed rate and variable rate mortgages, you must carefully choose the mortgage that best suits your finances. It is also a known fact that short term mortgages overheads more in monthly payments. Hence if your monthly expenses are very high, you must not select a mortgage which has a very small loan period!

The area or locality which you select to settle in is also related to your finances. While some localities are very expensive, that does not mean you have to move into the cheapest locality of the town. The locality determines your satisfaction of home buying. Also remember, if you are to sell your house in the future, the locality plays an important role. Once you select your locality, it is important that you know the property values prevailing in that area. You can ask your realtor to take you through a comparison of home values in the locality.

You must mandatorily inspect the house and the area before you close a deal. You can get a home inspector to ensure the good condition of the home. This may cost you between $300 and $500. While closing the deal, you must consider the costs of closing. The closing costs usually reach up to 5 percent of the home prices. Make sure the estimate your realtor gives you includes the closing costs, fees, legal costs, property tax, insurance, deed recording fees and the fess to a notary.

Your home buying process can be simplified when you hire a reliable realtor. The referrals from friends and family ought to be considered while choosing a realtor. The right realtor will understand your financial standings and help you accordingly! The leading real estate agents in the business are the GreatWest GMAC Real Estate. Their team of experts will ensure that you buy your dream home without any hassles. Don’t forget to check out their website: http://www.greatwestgmac.com/service.cfm?ID=11300

For additional resources and information please visit the following sites.

Resource Links:

http://www.gmacrealestate.com

Bill Fields All Star Coaching Program: http://www.AllStarCoaching.net
GreatWest GMAC Search all MLS Listings: http://www.LocalHomeLink.com
GreatWest GMAC Consumer Buyer/Seller Blog: http://www.GreatWestBlog.com

T. Sami Siddiqui (Broker/ Owner) Buzz About Sacramento Blog: http://www.samisiddiquiblog.com
Brodie Stephens (Executive Vice President) One Stop Blog: http://www.brodiestephensblog.com
GreatWest Podcasts- Weekly Updates on new REO, Short Sale, Bank Owned Foreclosure Listings: http://www.HouseTalkOnline.com
GreatWest Videos: http://www.youtube.com/brodiestephens
Facebook Brodie Stephens Profile Page: http://www.facebook.com/brodiestephens
Facebook GreatWest Profile Page: http://www.facebook.com/searchmlshomesforsale
MySpace Brodie Stephens Blog: http://www.myspace.com/brodiestephens
MySpace GreatWest Blog: http://www.myspace.com/greatwest
Picasa Web Album: http://picasaweb.google.com/brodiestephens