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Common Mistakes Homebuyers Make

Tuesday, January 26, 2016 - Article by: MEL SMITH--LENDER OF THE MONTH - Meadowbrook Financial Mortgage Bankers - Message

Purchasing a home can be a complicated business; especially when you are entering the housing market for the very first time. Many first-time homebuyers fail to do enough research and fall into a lot of the same oversights. Here are some of the most common errors.

Poor Budgeting

Many homebuyers fall into the snare of not looking past the initial down payment. As a result they have virtually no funds left to cover other home buying expenses. If you are hesitant about the economics of buying a house, speak to your mortgage broker before you go any further.

No Home Inspection

A home inspection is not obligatory, but it is highly recommended. A casual walk through the home is not a sufficient check. Make sure that you get everything double checked, from electrical wiring, plumbing, roofing, and foundation. Even check for remnants of things such as asbestos or possible mold. These are all things that will cause you more than a few financial headaches in the years to come.

Not Shopping Around

A lot of people fall into the immediate mistake of "falling in love" with a certain home. This is a risky thing to do, as it can cause you to make a careless or under-researched decision.

Bad Credit Score

Bad credit will create issues for financing your new home and could put some big obstacles in the way of acquiring your dream house. You may find that you do not qualify for certain homes and many loans if you have not maintained a good credit history or have no credit at all.

Purchasing at the Wrong Time

The housing market fluctuates continually. If you are looking to enter it for the first time, you must make sure that you are doing so at the most advantageous time. Not doing so could potentially cost you a lot of extra cash.

Hidden Fees

Whenever you sign a legally-binding contract, you should double check the fine-print. If you want to be truly safe research and hire a real estate attorney to help you with the transaction.

Before making such a big decision take time to review this list. Doing so can ensure that you don't repeat these mistakes. If you have questions, or need advice, contact your mortgage professional. They will have the answers to assist you in making the soundest decision.

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