We see them advertised everywhere – the “what to do when buying a home” checklists. You know the ones.
- Property inspection
- Lender documents
- Title commitment
- Appraisal, etc.
But what about the things NOT to do? Especially when buying your first home, here are some important things to pay close attention NOT to do.
1. Start your home search without seeking professional help.
Finding the perfect realtor is vastly important in buying a new home and selling your current home.
Your realtor can handle all negotiations, open houses, walk-through’s, marketing and listing efforts, and time dedications for you – plus, they will have access to thousands more homes for you to look at purchasing, too.
2. Start looking for homes without checking your credit.
It’s so important to check your credit BEFORE searching for your perfect home. You’ll need to figure out what you can afford.
This is what David Bach suggests in “The Automatic Millionaire.” 29% of monthly gross income should be put toward home expenses; 41% if you don’t have any debt. For more of Bach’s advice, read this article.
3. Search for your property and then apply for a loan.
It’s best to first find your mortgage broker, apply for your loan, know which homes you will be able to afford, then go searching for your perfect property.
For suggestions on finding the right mortgage broker for you, talk to your realtor. They will be able to suggest the perfect person and company to help you!
4. Skip the home inspection.
The best way to avoid problems after purchasing your home is to take care of them beforehand. Have the home inspected and be sure you know exactly what you’re getting into.
5. Use your entire savings for the down payment.
One huge mistake first-time home buyers can make is putting their entire savings into the down payment on the home – then, you won’t have any extra funds to put toward all those extra expenses.
6. Don’t take into account the extra expenses buying a home entails.
Here are some examples of extra expenses you may incur after purchasing your home:
- Lawnmower (especially if you’re moving from an apartment!)
- New appliances
- Hose & nozzle
- Fence (this can cost you thousands!)
- Door locks
And if the home is older, be prepared to take care of these as well:
- Air conditioner
- Pipes & plumbing system
- Electrical outlets
Lastly, it’s important not to
7. Trust verbal agreements.
Nothing is set in stone until everything is finalized – on paper.
When buying your new home it’s important to partner with a real estate agent you trust! They can help you take advantage of offers specific to you – for first time home buyers, veterans, etc.
What advice do you have for new home buyers? Was there something you did when purchasing a home, that you would never do again?
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