It’s no secret that buying a home can be a complex and costly process. However, if you’re not careful, you may end up making some common – and costly – mistakes according to Tommy Shek.
Here are 16 mistakes to avoid when buying a home.
1. Not getting pre-approved for a mortgage:
One of the biggest mistakes you can make when buying a home is not getting pre-approved for a mortgage. This will ensure that you know how much you can afford, and it will also give you an advantage when competing against other buyers.
2. Not shopping around:
Another mistake home buyers often make is not shopping around for the best mortgage rate or the best home deal. It’s important to compare rates and terms from different lenders to find the best deal possible.
3. Focusing on the monthly payment alone:
Don’t focus exclusively on the monthly payment when shopping for a home. You need to consider other factors such as property taxes, homeowners insurance, and HOA fees.
4. Not considering your long-term plans:
Don’t buy a home if you’re not sure you want to stay there for at least five years. You’ll likely end up losing money if you sell sooner says Tommy Shek.
5. Buying more home than you can afford:
Don’t overspend on your home just because it’s a good deal. Buy a home that fits within your budget so that you don’t end up in financial trouble down the road.
6. Not considering all of your expenses:
When buying a home, be sure to account for all of your expenses, including closing costs, moving costs, and repairs.
7. Underestimating how much repairs will cost:
Be prepared to spend some money on repairs after buying your home. Home repairs can add up quickly, so it’s important to have a cushion in your budget for unexpected costs.
8. Not considering the long-term costs of home ownership:
There are some long-term costs of home ownership that you need to consider, such as property taxes, homeowner’s insurance, and repairs. Make sure you’re prepared for these expenses before buying a home.
9. Not getting a home inspection:
One of the most important things you can do when buying a home is to get a home inspection. This will help you identify any potential problems with the property.
10. Buying a fixer-upper:
Don’t buy a fixer-upper unless you’re prepared to put in some time and money. Fixer-uppers can be a great deal, but they often require a lot of work explains Tommy Shek.
11. Not being prepared for a bidding war:
If you’re not prepared to bid on a home, you may end up losing out to another bidder. Always have your financing in place and be ready to make a competitive offer.
12. Not getting a loan pre-approval:
Before you start shopping for a home, get pre-approved for a loan. This will show sellers that you’re serious about buying and it will help you narrow down your search.
13. Settling for the first home you see:
Don’t settle for the first home you see – take your time and look at a few different homes before making a decision.
14. Not hiring a real estate agent:
Hiring a real estate agent is one of the best decisions you can make when buying a home. They can help you find the right home, negotiate the best deal, and guide you through the entire process.
15. Not reading the contract thoroughly:
Don’t sign a contract until you’ve read it thoroughly and understand all of the terms. If there are any parts that are unclear, ask your real estate agent to explain them.
16. Not getting homeowner’s insurance:
Don’t forget to get homeowner’s insurance once you buy your home. This will protect you in case of an accident or disaster says Tommy Shek.
There are a number of mistakes that home buyers can make when purchasing a property. By avoiding these mistakes, you’ll be in a much better position to buy a home that meets your needs and budget.
There are a lot of things to consider when buying a home, so it’s important to be prepared for the process. By avoiding these common mistakes, you’ll put yourself in a better position to buy a home that’s perfect for you.