I'm sure someone has observed that while smart people learn from their mistakes, wise people learn from the mistakes of others.  Unfortunately, the cost of learning from one's own mistakes can be considerable, and mistakes made in the home buying process can cost thousands!  That's why I've prepared and posted 7 Costly Mistakes of Home Buyers.   Learn from the experience of others by avoiding these costly mistakes:

1.    Not getting pre-approved.  It's not only time consuming but disappointing to look at houses, negotiate a contract, and then learn that it's out of your price range. .That's why many sellers won't negotiate seriously with a buyer who isn't pre-approved for a mortgage.  

2.    Buying the wrong home.  Nothing is as disappointing as buying a home that doesn't meet your needs.  But you must also know the difference between needs and wants.  So consider things like the number of bedrooms and baths, square footage, size of yard, age of the home, proximity to schools, shopping, and work, desired amenities, etc.  Set priorities and evaluate homes accordingly.  

3.    Paying too much for the home.  You make money when you buy a house, not when you sell it.  To do this, however, you need to know if the asking price is high or whether it's a good deal.  Only appropriate market research will help you know the difference.  

4.    Committing contract faux pas.  Make sure everything is in writing.  What's not written isn't enforceable.  Pay attention to the TIME IS OF THE ESSENCE clauses.  Overlooking these deadlines can be costly.  Make sure all contingencies are clearly written out and that everything, including any changes, are properly dated, initialed and signed.  Use a bill of sale for transfer of personal property.  

5.    Not getting inspections or a home warranty.  Trying to save a few dollars here could cost you thousands later on.  The only way to know for sure what you're buying is with a professional home inspection.  Even if you cannot negotiate for the seller to pay for a home warranty, it's well worth the few hundred dollars it'll cost for a year's worth of protection.  

6.    Failure to know all the costs.  Due diligence is necessary here.  Be sure you uncover the total costs associated with your mortgage, your closing attorney, inspections and warranties.  Get a Good Faith Estimate from the lender and a HUD financial statement from the attorney before going to closing.   

7.    Choosing the wrong real estate agent.  Not all agents are the same.  Make sure you find one who is competent, skilled, and committed to serving your needs - before, during and after the sale!  The right agent will help you avoid all the costly mistakes listed above.

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