Blog RSS

Big Mistakes Buyers Make

Today, I came across an article from CNNMoney.com titled “6 biggest mistakes home buyers make.”  After taking a look at the list I thought the six items are noteworthy.  I am not sure if they are the biggest mistakes that a buyer can make.  But, the list is one worth review.  Here is why I think the six items they mention are important to a buyer.

1.      Know Your Credit Score – Your credit score one of the major factors in what a bank will review and consider when approving you for a mortgage.  Not only do you need to know your score you need to know what that score represents.

2.      Don’t buy a car before a house – Or any other major purchase.  When you make large purchases your credit can be affected and your cash reserves will also be affected.  If you took a loan for that new car now you might feel more pressure to qualify for a mortgage.  If you paid cash for that same car, keeping that cash on hand in the bank, could have better results for you qualifying for a better rate on your mortgage.

3.      Skimping on a home inspection – We spend a lot of time with our clients making sure they do not skimp on their home inspection.  This is a critical time to learn about your home and perform any needed due diligence.  You need to take the time to be a part of this important process.

4.      No Attorney – We encourage everyone to have an attorney when they are buying a property.  Often there are many unforeseen issue that arise with the title, the sale, and the parties involved.  A good agent will help control that but certain issues an attorney needs to handle.  Often with a great team in place you will not even notice the issues.

5.      No Contingencies – You should have a home inspection contingency or mortgage contingency when you are purchasing a home.  If you know you need a mortgage then you should never waive that element of the offer.  Contingencies are part of your offer to protect your interest.

6.      Budgeting for Insurance – It is important to budget for the other items associated with home purchase.  Home owners insurance is one, don’t forget about property taxes, utility bills, and landscaping.  If you are upsizing or first time home buyer these items might be more expensive then you are used too.

A great buyer’s agent will help you thought the process and make sure you do not make any big mistakes.  These six from CNNMoney’s are notable along with others.  So, take your time making that purchase and all will go smoothly.  

 

- Dwell360 Real Estate