Top 5 Buying Mistakes
When thinking of buying a home there are certain things you have to keep in mind before you head out and pound the pavement! There nothing worse then going out looking at properties and falling in love with a place you cannot afford.
Number One “Get Pre Approved”- The number one thing you should do before you head out is go visit your bank or mortgage broker and get pre approved. This way you can set a game plan for yourself, you will know what kind of mortgage you can get. Also this is a great way to determine your budget and what sort of carrying costs you can afford on a monthly basis.
Number Two “Determine Location”- Before looking for places you should research areas first. You do not only want to think short term when it comes to making a purchase, at some point you will be moving on. Therefore you have to think of it as an investment too. You must always consider the surrounding areas, is there any future development that will potentially increase the value? What is the zoning? Does the community fit your lifestyle? Even if you have no children or plan to have any living near good schools increases the value!
Number Three – If a lender is able to lend you more money doesn’t mean you can afford it. This could lead to some serious financial trouble. You must also consider the additional monthly carrying costs such as condo fees, insurance,utilities and any maintenance.
Number Four- Even if a home is brand new and looks great you should always get a home inspection done. Human error can happen, all homes come with defects. There is never a perfect home, ask your Real Estate Professionalto refer a established home inspector when it comes to inspecting your potentially new home!
Number Five- Do not sit back and wait for the marketto change in order to purchase. Unfortunately we do not have a crystal ball we can foresee the future in. If you are emotionally and financially ready to purchase a new home, its always a good time to buy. All the time you waste thinking about it, you could be building your own equity, getting tax deductions and enjoying all the other home buying incentives!
