Mistake #1: Not Getting a Home Inspection
One of the most common mistakes people make when buying a house is not getting a home inspection. A home inspector will look for any potential problems with the property that you may not be able to see yourself. This can save you a lot of money and headaches down the road.
Mistake #2: Not Getting Pre-Approved for a Mortgage
Another big mistake is not getting pre-approved for a mortgage. This can cause a lot of problems when you’re trying to close on a house. A seller may not take your offer seriously if you’re not pre-approved, and you could end up losing out on your dream home.
Mistake #3: Failing to Negotiate
Many people are afraid to negotiate when buying a house, but it’s one of the most important things you can do. Don’t be afraid to ask for what you want, whether it’s a lower price or better terms. The worst that can happen is that the seller says no.
Mistake #4: Not Knowing Your Closing Costs
Closing costs can come as a surprise to many home buyers. These are the fees associated with buying a house, and they can add up quickly. Make sure you know what your closing costs will be before you get to the settlement table.
Mistake #5: Buying More House Than You Can Afford
One of the biggest mistakes you can make when buying a house is spending more than you can afford. Just because you’re approved for a certain mortgage doesn’t mean you should max out your budget. Stick to what you can comfortably afford so you don’t end up in financial trouble down the road.
Mistake #6: Skimping on the Down Payment
Putting less than 20% down on a house could mean having to pay private mortgage insurance (PMI). This is an extra monthly fee that can add up quickly. If you can, aim to put down at least 20% to avoid this added expense.
Mistake #7: Not Shopping Around for the Best Mortgage Rate
Interest rates on mortgages can vary widely, so it pays to shop around. Get quotes from a few different lenders and compare their rates before making a decision. You could end up saving thousands of dollars over the life of your loan by doing this.
Mistake #8: Failing to Consider the Neighborhood
When you’re buying a house, it’s important to consider the neighborhood where it’s in. Things like the crime rate, schools, and amenities should all be taken into account. You don’t want to end up in a place you’re not happy with, so do your research before making an offer.
Mistake #9: Not Getting Homeowner’s Insurance
Many people forget to get homeowner’s insurance when buying a house. This is a big mistake because it protects you from damage or theft. Make sure you get a policy in place before you move into your new home.
Mistake #10: Not Understanding the Mortgage Process
The mortgage process can be confusing, so it’s important to understand it before you get started. There are a lot of different terms and steps involved, so be sure to do your research or talk to a professional if you’re unsure about anything.
Mistake #11: Making Too Many Changes Before Closing
Once you’ve gone through the mortgage process and everything is set to close, resist the urge to make any major changes. Taking on a new job, buying a new car, or making any other big financial move can jeopardize your loan and cause delays.
Mistake #12: Not Having a Contingency Plan
Things don’t always go according to plan when buying a house. There could be problems with the inspection, the appraisal, or the financing. That’s why it’s important to have a contingency plan in place so you’re not left stranded if something goes wrong.
These are just a few of the mistakes people make when buying a house. Avoid them and you’ll be on your way to making your dream home a reality.
