Many people don’t do the necessary research needed when considering buying a house. This process is very confusing when you don’t understand what you are looking for. Purchasing a home can easily be one of the biggest investments of our lifetime. That’s why it is important we handle this process with care. Here are 10 things to avoid when purchasing a home.
1- LOOKING FOR A HOUSE WITHOUT GETTING PRE-APPROVED
Some may confuse pre-approved with pre-qualification. During the pre-qualification process, you’re shown an estimate of how much you may receive to buy a home. Pre-approval is the actual process where your credit will be checked. You will submit verification documents, and your lender will provide you with official documents to show your pre-approval rate and amount. Most realtors won’t start showing you homes unless your pre-approved. So the 10 things to avoid when purchasing a home starts with making sure you are pre-approved before showing up to a realtor.
2- MAKING VERBAL AGREEMENTS
Make sure you always read the fine print. Contracts speak louder than your realtors’ words. For example, if your agent tells you the fridge is included. When you buy the house if the contract says otherwise don’t expect that fridge to be there when they hand you the keys to your new house. Avoid the non-reading mistake. Read everything before you sign.
3/4- CHOOSING A LENDER JUST BECAUSE SHE/HE HAS THE LOWEST RATES.
You may end up paying more for a loan than you would expect. Always try to go rate shopping before you decide on a rate or decide on the rate one lender gives. Find what’s better and more affordable for you. Keep in mind you do not have to select the lender recommended by your realtor.
5- GET YOUR PRE-APPROVED RATE IN WRITING
Always make sure you ask the mortgage company to give you a written copy of the rate when offered. Don’t leave without it.
6- USING DUAL AGENTS
When buying a home, you will be better off having your own agent, instead of a dual agent. A dual agent is a realtor that represents both buyer and seller. Dual agents typically work more in favor of the seller rather than the buyer. Yet, he/she would be making money on either side of the story.
7- BUYING A HOUSE WITHOUT A PROFESSIONAL INSPECTION.
Always make sure you get an inspector to check the house before you decide to buy it. An inspection can help you make sure you are aware of any issues prior to purchasing the home. And if any issues are discovered in the inspection you can speak to the seller about repairing them. Additionally, most lenders will require a home inspection before you actually close on the home.
8- NOT SHOPPING FOR HOME INSURANCE UNTIL YOU ARE READY TO CLOSE
Once you have a contract on the home you are deciding to buy, then start to shop for insurance. Never wait till the last minute to shop for insurance. If you decide to go insurance shopping last minute you may not find the best one that suits your needs. Or the best rates.
9- DO NOT SIGN UNREAD DOCUMENTS
READ THE DOCUMENTS BEFORE SIGNING!! Make sure you ask for a copy of any documents you need to sign about 2-3 days prior to needing your signature. This is so you can have enough time to carefully read the documents and request any corrections. Don’t ever sign anything before you read them. That’s just good practice.
10- MAKING YOUR MOVING PLANS TOO TIGHT
Give yourself adequate time to move into your new home. Be sure to plan for delays. It’s not uncommon for closings to get pushed back or sometimes delayed. By giving yourself at least a 2 week grace period you can be prepared for any possible setbacks.
Always try to keep these tips in mind before you buy a house, they can save you a lot of trouble in the long run.