10 Common Mistakes that Home Buyers Make

Declining home prices and low mortgage rates are great reasons to buy a home right now. While you may be eager to purchase a new house, you shouldn't act too impulsively. You could forget to do certain necessary tasks in your hastiness.

When armed with the right information, you can effectively crunch your numbers and reflect on the big picture as well as your property choices. If you are about to become a home buyer, you need to avoid these common mistakes that many people make, especially first-time home buyers:

1. Failing to anticipate the costs- There are numerous expenses to buying a home, and many are not prepared budget-wise. Consider all the fees associated with closing costs as well as any necessary repairs or maintenance. Also, you may have an increase in utility costs.
2. Not knowing your credit score- You can get lower interest rates on your loan when you have a good credit score, so find out what yours is as soon as you can. The lower your credit score, the higher your costs of borrowing will be.
3. Not taking the time to find the right real estate agent- You need a knowledgeable agent who takes your needs and desires seriously. They should also be patient if you are first-time buyer. The right agent has your wants in their best interest.
4. Buying when you expect to move too soon- If you are planning to relocate for work or move closer to family, buying is a bad idea. If you aren't willing to stay put for five years, don’t buy.
5. Failing to get a home inspection- Simply put, you need to know what you are buying. You should hire a professional inspector to avoid buying a lemon of the house. Otherwise, you may be buying someone else’s problems such as electrical issues, mold, poor insulation, termites or plumbing problems, to name a few.
6. Assuming a foreclosure is a great deal- These homes owned by banks or lenders aren't always the bargain that you think you are getting. While the price may be low, the house may need extensive and costly repairs, especially if it has been sitting vacant for a long time.
7. Overbuying- Spending and borrowing the maximum amount for your home could wind up being a bad idea should the unexpected occur such as a pregnancy or illness.
8. Not assessing your financial situation- When you don’t examine your finances, you misunderstand what you can afford. This can lead to spending beyond your means.
9. Buying a home right before the purchase of a car- This could lower your credit score and will also affect your debt-to-income ratio, which is a key factor in the loan-qualifying process.
10. Accepting verbal agreements- It should go without saying that you need to get everything in writing.

If you aware of the above mistakes, you can potentially avoid any headaches during the home buying process. Common mistakes are usually the result of rushing, so take your time when searching for a home, making an offer and closing the deal. Awareness is the first step in the avoidance of missteps.

Not knowing the value of your home is yet another mistake that you don’t want to make. In order to make sure that you get the best deal for your money, consider getting a free home valuation report from Neighborhood IQ. It will give you the peace of mind that you need.