When looking for a new home, it can be an emotional process that can sometimes make buyers vulnerable to making mistakes. They might overlook important warning signs, forget to obtain the needed home inspections, and even skip opportunities to negotiate.
Here are some of the most common home buying reminders to remember when purchasing a home.
Know Your Finances
The first thing you need to do is determine how much you can afford for your new home. You must decide how much total mortgage payment you can afford and also include the cost of utilities, insurance, taxes, and special assessments.
You will also have to include a contingency amount for unexpected items, such as a new roof or other major repairs, because you never know what you’ll need to have done to the home.
The best way to avoid this is to make sure you have a good amount of cash saved, so you are not forced to borrow money from your home lender. You should plan on setting aside at least 10 percent of the purchase price of the home as a down payment. If you cannot do that, you should consider saving up early on a completely separate account, so the money is yours, and you don’t have to borrow from your mortgage lender.
Get a Home Inspection
You know what they say, “If you don’t ask, you don’t get.” When looking for a new home, you should ask for and obtain an inspection of the home’s structural and mechanical components.
A structural inspection looks for foundation defects, while a mechanical inspection examines and reports on heating and cooling systems, electrical systems, and plumbing.
If a problem appears during the inspection, you can either negotiate a reduction in the purchase price or get the seller to provide a credit to fix the problem. If the seller refuses, you can walk away from the deal.
Work with a Real Estate Broker
Realtors are some of the most important people to have on your side when looking to purchase a home. They will help you find the perfect house, negotiate on your behalf, and represent you during the home sales process.
They will also assist you with home inspections, pre-qualifying for a home loan, dealing with home buying loans, and much more.
You should look for an agent specializing in your particular neighborhood, has many years of experience, and knows what the area has to offer. These agents will know the best homes and the most affordable ones in the neighborhood.
Be Prepared to Make an Offer or Buy a Home
When you are ready to make an offer on a home, you may feel eager and excited to do it quickly to move into your new home. The problem with that is that you may end up forgetting to negotiate with the seller to obtain the best price for your purchase.
If you fail to negotiate well, you might be stuck with a home that is overpriced, or you may end up having to spend more money on it to repair it later. It’s better to take a little time and negotiate to get the best price from the seller rather than remain stuck in a bad deal.
Your Team at Mortgage City!
Buying a home is a process and there are many things to keep in mind during the procedure, such as obtaining a pre-qualification or pre-approval letter, and getting home inspections. You will need to be prepared and do your homework before making that homebuying commitment to avoid home buying mistakes.
Mortgage City is a licensed mortgage broker in Michigan, Florida, New Hampshire, Texas, California, Massachusetts, Indiana, Colorado, and Ohio, that helps provide home buying assistance to our clients. Let us help set you up with the right mortgage lender so you can find the right loan to buy your dream home. Contact us at (248) 930-8709 today!
