10 Biggest Mistakes Home Buyers Make
On average 50-60% of home purchases are made by first-time home buyers. Many first-time home buyers have no idea where to start and make ignorant decisions as a result. Here is a list of the 10 biggest mistakes that are often made by home buyers.The Top Ten
1 Being caught up in the moment causes some home buyers to buy a home at their highest loan approval amount even tho the mortgage payment is going to leave very little extra money in their budget for other expenses.
2 Not getting 2 or 3 interest rate quotes from different Mortgage Companies. Interest rates vary with mortgage companies and the difference can add up to tens of thousands of dollars in extra interest payments.
3 Not getting references from their Buyers Realtor. The home buying experience is often determined by how good a Realtor you have. Contacting your prospective Realtor's former clients can help you determine what kind of experience you may have.
4 Making a major purchase while in the process of getting approved for a loan to buy a home. Your loan approval is based on your credit score and total overall debt ratio.This could put the home loan approval in jeopardy.
5 Not checking the school district that the home is in that they are buying. Can cause you to be stuck unexpectedly with the expense of paying for private school for the children.
6 Not paying for a home inspection. Home inspections are an optional expense for a homebuyer. Not getting one can result in discovering later some major mechanical or structural issues with a home which will now be an unexpected expense in repair cost.
7 Not comparison shopping when looking for a home. Falling in love with a home before checking out similar homes nearby can result in committing to buy a home maybe would have found a nicer or more reasonably priced home nearby that is also for sale.
8 Adding new or maxing out existing credit cards. This can have a negative effect on the home buyers credit score which can put their home loan approval and interest rate in jeopardy.
9 Not having rainy day money saved. It is advised that a home buyer has some rainy day money still saved after the purchase of a home. As a homeowner, there are unexpected expenses that can arise that it is best to be prepared for in advance.
10 Job changing in the middle of purchasing a home. Lenders want to see at least two years of consecutive employment in the same line of work. If a career change occurs before buying the home this could jeopardize the approval to purchase the home.
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