Are you looking for a new place to call home?
It can seem like a nightmare, with the housing market going up and down. Fortunately, experts believe that while growth is unsustainable, a crash is highly unlikely.
You have all the more reason to look for a home while the market allows it. Strike before the housing market goes sour.
That said, you should practice caution to avoid the most common mistakes in-home shopping. Don’t worry, we’ll guide you with a few tips below. Continue reading our list right here to discover what to avoid and how.
Forgetting Your Credit Score
The most common mistake that first-time homebuyers make is forgetting their credit score. While the bank reminds you it’s necessary for a loan, most forget to maintain a good score before buying a house.
What’s great is you can request a credit report to see how your current score fares. From here, you’ll know what to do to maintain or improve your score. With that in mind, you can make a better home shopping strategy to suit your potential loan.
Not Scoping Other Lenders
Most think that they need to close the deal fast lest someone else land a deal first. Pop culture cemented that thought in our minds, but these only happen when financing becomes an issue. Because of this, though, people often rush and take the first loan they come across.
Doing this isn’t ideal since other lenders may offer you a better deal. You need to take all the advantages you can get, so it’s best to ask other lenders before making any commitments. Their deals may be what will save you from the very pitfalls you’re avoiding regarding financing.
Foregoing an Agent
Another common mistake people make is thinking they could find a house on their own. While it’s a possibility, you’re missing out on the experience that a professional real estate agent brings.
They know all the different types of homes, and they help you find the exact location, architecture, and vibe you’re looking for. Professionals, like the ones at Skender-Newton Realty, will also fill you in on what you need to know about the homes you’re eyeing.
Neglecting Closing Costs
Homebuyers forget about closing costs the most. Some only consider the cost of the house and the down payments needed to close the deal. They forget to set aside funds for the mortgage, inspection costs, and homeowners’ insurance.
These often make up around 2% to 5% of your loan. It’s a common practice to ask the seller to cover these initially. It’s not guaranteed, but it’s the best option when you’re in a pickle.
While home shopping, especially when searching for homes online, it’s easy to forget to negotiate. Others only end up comparing home prices at face value and decide based on those. Prices here aren’t final, as most may think.
It never hurts to negotiate down to a lower price. This can help you save a thousand dollars, which you can then use for closing costs.
Avoid the Common Mistakes in Home Shopping
Looking for a new place to live need not be too stressful. Save yourself a fortune by avoiding these mistakes in-home shopping. Arm yourself with the knowledge you need to look for your new home today!
Are you interested in learning more about the real estate industry? Check out more of our posts and guides to know what’s new in the market now!