A home is a dream come true for all. Buying a home can be a daunting task, especially for first-time buyers. If you are buying home the first time, you should carefully review each step and avoid some common errors people make. These mistakes often result in loss of money and bring trouble.
Few common mistakes, which cost money while buying a home, are:
Choosing a real estate agent/broker
If you wish to purchase a home with help of real estate agent or a broker, ensure that he / she is listed in the VIP Buyer program, house-hunting service or buyer profile system. Basically, he needs to be Internet savvy. That ways our agent can cut down on the chase and bring your house hunting down by almost a year.
Pricing the property
If you have decided on which home you wish to buy but have not done a comparative pricing analysis, you may end up paying far more value then the market. Always try and research into the local market, else you will overpay for a new home by several thousand dollars.
Finding correct home
With help of your real estate advisor, you should list down all the things you need from your home. You may buy a home and later if you find that it is far from your workplace, or kid school, it will be very painful.
Many times, people keep estimating what will be their loan limit and then hunt the house, only later do they realize that they were eligible for higher or lower loan. If you get a pre-approved mortgage in hand, you may save a lot of time estimating which home you can buy and which you can’t. Pre-approved mortgages can be accessed on the Internet and will take about 30 minutes. This simple exercise will save a lot of time and effort.
Legal issues like title papers are often left to brokers or assumed to be perfect. This is very dangerous. If you have decided on a home and a price you will pay, examine the legal papers very thoroughly. Examine the title papers which should be clear and there should be no lien or attachment. You should get a surveyor report for the property. An accurate and up to date survey will help you get a clear property.
Inspection of the house
A home bought in hurry may need a lot of expensive repairs later. If you are buying a home, examine it thoroughly for any structural damage, corner repairs as well. Termites, electrical system, plumbing lines, air condition systems, and all such systems should be inspected. A small investment of USD 500 to USD 600 will get you a full report on the condition of the home, you wish to purchase.
Estimation of closing costs
If you think that your lender will happily accept the prepayment, you are mistaken. Lenders charge anything between 2% to 5% of loan amount, as closing costs. You should discuss with the lender beforehand and agree on a fee, which will be your closing cost.
If you are careful about a few issues listed above, you will save a lot of money on your home purchase.