By Desare A Kohn-Laski
Every individual loves to reside in a space he can freely call his own. This is why many of us work hard to buy our dream homes. Yet, some of us still commit mistakes which put us to expensive and money-wasting situations. Here are some of them along with some tips on how you can avoid committing them.
A great number of would-be home owners are renters. The lack of adequate planning when moving out and buying a house are interconnected to each other. Sometimes, renters forget to read the terms and agreements of their lease contracts putting them into double expenses of having to pay remaining months of the lease and having to produce down payment for the house they purchased. As a suggestion, you should wait for the contract to expire, consume all your advances, and prepare for your down payment.
Failure to avail of a loan pre-approval
You may have offered the home seller the best deal he or she could ever have. However, the seller could be hesitant to ink deals if you are not pre-approved for a housing loan. A letter from a financial institution like lending companies, banks, and mortgage firms stating that you are pre-approved for a home loan will strengthen the seller’s confidence that you will be able to make the payment. As a recommendation, you should apply for home loans before embarking on house hunting.
Forgetting of hidden costs
Hidden costs are termed as such but they don’t always mean that they are actually hidden from you by sellers, agents, or brokers. These costs are those you commonly forget of such as those relevant to appraisal, home inspection, home staging, repairs and fixes, and property tax settlements. If you are to hire professionals, you should also anticipate the payment of professional service charges.
Focusing on the first house liked
Love at first sight may be true for building personal and intimate relationships but not at all with a house, so as first impressions. The exterior may be beautiful but the inside is full of damages you have to see yet. Buying a house should not be coupled with impulsiveness. The first house you see may be impressive but there could be more impressive choices out there. As a tip, have three to five options on your list. Perform careful selection weighing out the pros and cons of each house until you trim down to your final option.
Overlooking your credit score
Buying a house revolves on cash and credit. While it is important that you have enough money for the beginning expenses, be concerned of your credit ratings too. As important as getting pre-approved for a loan, your credit score is your passport to get this pre-approval. A housing loan will be your backup to get that dream house for you and your family. Experts advice that to maintain good credit ratings, pay debts and other financial obligations on time.
If you want to avoid these mistakes, you can always ask the expert help of your local real estate agent.