Buying a house is an exciting yet overwhelming experience, especially if it’s your first time. There’ll be challenges along the way, so it’s best to plan your every move. Be sure to do some research and avoid the following mistakes:
Doing Home Shopping Before Getting Approved for a Loan
Shopping for a first home is fun and exciting. That’s why many people tend to get right to it before anything else. But, looking for a house without getting preapproved for a mortgage is a big mistake.
Sure, it’s more exhilarating than going to a lender’s office, but the truth is, it’ll only ruin your home-buying experience. You run the risk of finding a property that you’ll love but is way out of your price range. And, when that happens, you’d be compelled to get a loan amount that’s more than you can afford.
Unless you’ve saved enough cash to pay for your first house, the process should start with a mortgage prequalification: Find a lender, get preapproved, and then look for a property.
Not seeking professional assistance
Buying a home can be complicated. You’ll need the expert advice of industry professionals, such as a real estate agent and loan officer, to navigate the process. Working with the right people also ensures you don’t fall victim to property fraud. They represent your best interests and have the ethical responsibility to do so.
Foregoing Home Inspection
Many first-time homebuyers skip the inspection process because they think it’s an added expense. After all, they’ve checked the property beforehand, and nothing seems to be amiss.
But, professional home inspectors often spot hidden damage that most people don’t. This step is particularly necessary if you’re buying an existing house. If the property has significant issues, an inspection will help you negotiate with the current owner to either have them repaired or adjust the price accordingly.
It’s exciting to purchase your first house, but it can also be tricky. The process is unpredictable and complicated, but the more you know about it, the easier it is to avoid costly mistakes.
But, being careful and wary doesn’t end after getting the keys to your home. You need to take certain steps to safeguard your title from fraudulent activities. A property fraud alert, for example, will notify you in case any deed or mortgage is filed under your name. It wouldn’t hurt to be vigilant when it comes to protecting what’s yours.