When it comes to an experience that can be tricky to manage for first timers, home buying is without a doubt one of the most challenging endeavours out there. It can be exciting, tiring, frustrating, or just outright scary. The best action you can take to remain in control during the entire process is to understand the most common mistakes made and avoid making them yourself. Here are a few to consider.
Making an Offer Before Officially Qualifying for Your Mortgage
An easy mistake any first time home buyer can make comes from getting slightly too eager and placing an offer on the home of their dreams before their actual mortgage has gone through with their bank. Assumptions are not your friend with regards to home buying, especially when it comes to assuming that your bank will approve your mortgage for a particular amount. If you do choose to make that assumption but the mortgage doesn't come through, then you could find yourself in a very uncomfortable position. You'll upset not only the other party (both the seller and his or her agent) but also your own agent. Instead, before rushing out to make an offer on a home, make sure that you've actually qualified for the specific mortgage you need from your bank to make the deal with the seller work.
Relying on a Seller's Verbal Commitment When Buying a Home
For first time home buyers, the verbal agreement is a mistake that often results in a buyer losing his or her dream home. A mutual nod and handshake to seal the deal on your home will not do anything to save you if the seller decides to turn around and make another deal with another buyer for a better price. Depending on how late they decide to turn the tables on you, you might even get caught with nowhere to go mere days before you were planning on moving. Worst of all there would be no legal recourse you could take against the seller. Instead, a written agreement that is legally binding is the way the only way to go if you actually want to acquire the home of your dreams.
Failing to See the Full Spectrum of Expenses Facing You
Due to the overwhelming nature of home searching and buying, it's quite easy to simply overlook the full spectrum of expenses you'll be facing in the near future. Aside from the price of your home itself, you also need to take into consideration things like property taxes, home insurance, and home repair. Each of these can drastically increase your overall expenses on top of your monthly mortgage payment. The best way to avoid the danger of not having enough money to go around is to ensure that your budget covers everything before actually signing for your home on the dotted line.
Home buying is a delicate matter that requires plenty of knowledge to get exactly right, and this is something first-time buyers should especially be aware of. An easy way to build your knowledge on the best way to purchase your first home is to recognize the mistakes that many first-timers make. Avoid each of these at all costs to make your home buying experience go as smoothly as possible.
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