Home Buying Pitfalls You Should Avoid

Home buying is a dream endeavor for most people

. It is your way to securing your family and future generations to have decent sheltering. In order to be successful at this venture, you have to be careful of your decisions. In any transaction, there are looming consequences which can lead to damaging your finances. Whether you are a first-time home buyer or looking for a new home, familiarizing yourself with common home buying mistakes can guide your decision making process. Having the appropriate knowledge about things to avoid before entering any real estate transaction will prove to be beneficial for you and your finances. By knowing some of the common pitfalls explained below, you have better chances of avoiding them. Thus, your endeavor to finally own a home will be fruitful. Doing the transaction on your own It would be natural if you would like to cut down on your expenses due to the seemingly endless reports of economic difficulties. You may want to eliminate getting services from a real estate agent. Some investors would prefer to do their own property search and enter a transaction immediately. While these situations have truth in them, not everyone can be capable of properly dealing with sellers and lenders. Especially if this is your first time to undertake buying an estate, you need the expertise of an agent who has much more knowledge about buying policies, property details, market trends and other legalities concerning real estate transactions. However, note that upon hiring an agent, you are fully surrendering all the control to him. Your opinions and decisions will still critically matter. Jumping into cheap homes In line with wanting to accumulate savings whenever possible, you most probably want to get a house cheaper than standard market values. There is nothing wrong with this but some of these homes are priced as such because there are further attachments to them. For example, there are major repairs or expensive reconstruction needs before you could move into the house. In some cases, the seemingly affordable list price are actually exclusive of liens and property taxes, land area dispute, personally guaranteed mortgage loans or other legal issues. Mortgage payment problems Paying such dues is an intrinsic part of investing in real estate. Then again most home buyers may have become entirely enticed with the decrease in home prices, thus, neglecting the fact that mortgage rates are still very costly. They immediately buy a home without giving equal attention as to how they can responsibly keep up with further financial obligations involved in purchasing the property. In the end, they will be confronted with multiple loans just so they can maintain ownership of their property, even worse, the property might end up into entering foreclosure. Non-conduct of due diligence In most transactions, conducting due diligence is usually neglected. Believing the listing pictures or trusting the sellers word guaranteeing the house in good condition may not be enough. To ensure you are getting your hands at a sound investment, you must still visit the property and see for yourself whether its qualities are at par with your personal preferences. There have been numerous cases wherein buyers have found unfavorable conditions of the property late after the transaction has been closed. It would be too late to return the property to the former owner or too soon to be put back on the market again. Overlooking deal requirements There are various documents you will have to furnish the seller and/or lender before you can engage in any purchase deal. Some sellers and banks willingly provide a list of what documents the buyer has to accomplish. Unfortunately, there still occurs poor compliance to the requirements, which then causes the deal to be postponed or totally null and void. This may be due to miscommunication between the agent and the bank or seller, late submission or failure to acquire documents such as credit reports, income or bank statements within a specific timeframe. Early money down While putting down your earnest money deposit is a requirement for most purchase deals, you have to be careful in doing so. Some buyers abruptly give their deposit in order to fast-track the deal and make the property become theirs as soon as possible. The problem with this set up is that once you found another property with much lower pricing or has better features, it will take some time to get a refund. Thus, you will have a harder time to stabilize your finances. You might even end up acquiring loans unexpectedly to finance the other property. Apart from knowing what things to avoid before and during a purchase deal, being watchful not to commit such mistakes will save you from an unproductive endeavor. Remember to vigilant in practicing the proper transaction steps to enjoy the benefits of buying and having a home of your own.

Home Buying Pitfalls You Should Avoid

By: Marikor Hidalgo

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