RealEstate.com suggests buyers get to know these common home buying mistakes.
Doing it alone: Buying a house is a complex transaction. You’ll need a real estate agent, lender and an inspector to help get through the transaction.
Getting emotionally attached: Buy a home that fits your budget and your lifestyle. Be sure the home is in a community and neighborhood you desire. Do your homework with your Realtor and make sure you can afford the home and it fits your needs.
Shopping without being pre-qualified: Being pre-qualified gives you a general idea of how much you can afford to borrow. It gives you some bargaining power and keeps you from getting emotionally attached to a home you can afford.
Overbuying: Home buyers buying more than they could truly afford, in part, led to the collapse of the housing market. Analyze all your monthly costs including debts, food, transportation, entertainment, and savings. Ask about average utility costs and taxes. Don’t forget to budget closing costs (your lender is rquired to supply a Good Faith Estimate), plus moving, redecorating and maintenance.
Misplaced trust: Ask family, friends, co-workers, professionals and others you trust for referrals, but don’t take their word for it. Make sure you are comfortable with your Realtor and trust that they have your best interest in mind (not their own)
Get everything in writing. The home inspection, disclosures, the contract. Always. Should a dispute arise, you’ve got the details documented. Fortonuately with the new lending laws, everytime anything changes your lender must disclose the change!
Read the fine print: Make sure your Realtor explains all the contractual docuements. Don’t sign anything without feeling comfortable with what you are signing. If you Realtor struggles to explain any parts of the contract, run away!
Ignoring resale potential: Avoid buying a home that costs a lot more than neighboring homes. Reconsider buying the most expensive home on the block. Check on foreclosures in the neighborhood and make sure your Realtor does his/her homework on the market analysis.
Protect yourself with these contingencies:
• Mortgage financing. You may be preapproved but is the house? A formal appraisal confirms — or not — that there is sufficient value in the home to confirm a loan. If the house appraises lower than the sales price, the loan will be declined.
• Inspection. Never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.
Contact your Carolina Living Agent for all your Charlotte NC real estate needs.
