In a recent issue of Consumer Reports, a survey of Realtors revealed some costly mistakes that home buyers encountered when making the largest purchase of their lives…a house.
- Find the right Realtor. All Realtors are not equal and, like other people they have their own strengths, weaknesses and personalities. Find a Realtor who “gets” you and what you are looking for. The seller will be paying his/her commission and having professional representation can save you a lot of money and heartbreaks as you go through the buying process.
- Do you homework in the area you want to buy in. There are a lot of resources, including your Realtor, who can give you historical information on home values, the quality of schools, and crime just to name a few. Don’t make an offer on the first house you see…shop a bit to compare different styles and builders in the neighborhood.
- Don’t underestimate the cost of owning a home. It isn’t just about making you loan payment. There are costs associated with closing the loan and on a monthly basis, there are utilities, repairs, property taxes and the like. If you are planning on buying a “fixer-upper” be sure you have the time, patience and money to update the home.
- To get the best terms on your loan, be sure your credit is as clean as you can get it. If you don’t have great credit today, you are better off saving more money and improving your score. If you don’t know your credit score, talk to a mortgage professional and see what you can qualify for.
- Shop around with at least two lenders and compare what they have to offer. Don’t just go to your local “big” bank. And don’t be afraid to tell the lender you are shopping. You would do that if you were buying a car, wouldn’t you? Some lenders are more interested in what’s in it for the lender than getting you the best deal for you. Talking to more than one lender can save you a bunch.
- Get a home inspection once you identify the property you want to buy. Property inspectors are licensed to perform building inspections and can point out things that need attention now or will need attention when you buy the house. Think of it as taking a used car you want to buy to a mechanic to have it checked out. Except a house is a lot more expensive than a car and repairs can be much more expensive as well.
Don’t be in a big hurry to make the most expensive purchase of your life. Think it through and ask a lot of questions. You are likely dealing with a world you are not very familiar with. Get advice from professionals who work in this area for a living.
Got more questions about getting into your first home? Please contact us at Team Olden 702-498-7307 or YourTeamOlden@gmail.com.