It can be hard to buy a home -- even if you aren't a rookie.
There is so much to know, learn and remember.
Here are the top ten rookie mistakes that you shouldn't make:
1) Rushing into buying a home.
Buyers shopping in extremely tight markets often feel pressured
to make an immediate offer on a home. Other buyers are just so
excited and ready that they just love the first house they see.
You should take the time to become familiar with the local
market before you make an offer on a home.
2) Not asking questions.
It's a big purchase. Ask questions. Yes, it can be a little
uncomfortable, but if you don't ask, you may be surprised a
little later on. And don't believe everything you hear.
Sometimes a seller may slip a few years of the age of the roof
or the air conditioning system. Make sure that you have the
property professionally inspected.
3) Searching for the dream home.
It is really hard to find a home that will meet every
requirement you have. A buyer who repeatedly turns down homes
that meets most of the criteria will annoy the agent and may be
losing out on the best available property and good financing.
You should view different homes before you make an offer. This
helps you understand the marketplace and local prices. Don't
jump on the first property you see, but don't drag your feet
about what you love.
4) Overbuying a home.
You don't want to be seduced into paying so much for a home that
you can no longer go on annual vacations, out to eat or to the
movies. Work with your lender and your budget to find a
reasonable target price range and mortgage program that will
work best for you financially. Then find the house that works
for your family.
5) Saving a full 20% down.
If you can, do it. Putting all you can down is really the best
way to find reasonable financing out there. But it isn't always
reasonable to assume that 20% of the purchase price is just
sitting in savings, waiting. You can buy with much less down.
Consider VA, FHA and loans with private mortgage insurance, they
all come at less than 20% down.
6) Getting swept away.
You have to be realistic. Think about practical matters such as
storage space, parking, structure, maintenance, commuting. Don't
just see the pretty flowers in front and the nice kitchen and be
sold. Think about the everyday things. If it doesn't fit your
everyday life, for instance a 40 mile commute to work, you may
hate it after a while.
7) Zoning issues ignorance.
You never think about zoning. Until a 7-11 moves in next door to
you. Or a loud fire station. Or a nuclear substation. Ask about
the zoning of the property and surrounding properties.
8) Turning down representation.
The seller probably has a broker. That broker isn't working for
you. You must have your own representation at the table. A
buyer's broker, your attorney or both can give you equality at
the bargaining table. And a lot less stress.
9) Hold the inspection.
You have to have a professional home inspection. You have to.
You have to. There is no exception. Existing or new home, it
doesn't matter. Protect yourself from a bum deal by having the
home inspected.
10) Underestimating closing costs.
You need more than just a down payment. Your lender can help you
determining your probable closing costs. You don't want any
financial surprises, so be prepared for these costs.
Are there more mistakes people make? Yes. Buying a home is a
complex process. The best thing you can do is ask questions. Ask
everyone about everything.
Copyright 2006 #1 Loans USA
About the author:
Martin Lukac, represents #1 Loans USA
http://www.1loansusa.com a
finance web-company specializing in real estate/mortgage market.
We specialize in daily updates, rate predictions, mortgage rates
and more. For daily mortgage rates please visit
http://www.RateEmpire.com
