Are you in the market to purchase a new property?
Here are 5 mistakes that property buyers need to avoid at all costs.
1. Not Having a Budget in Mind
There’s no doubt that shopping for a property is exciting. Digging into real estate listings online and visiting open houses can quickly cause a property buyer to lose sight of a budget.
With that in mind, buyers should make sure to set a realistic budget at the beginning of the process.
Here are a few things the budget should take into account:
- The price of the property
- Monthly payments
- Down payment
- Closing costs
- Legal fees
- Renovations and repairs
- Any extra fees related to the new property
Creating a proper budget will help buyers make smart decisions both in the short term, during the sale, and in the long term.
2. Neglecting To Check Your Credit Score
Before you even begin the process of looking for a new property, it’s a good idea to check your credit score.
Failing to do so could lead to a big disappointment when the time comes to get financing. A high credit score and clear credit report will lead to faster preapproval and a lower interest rate.
You can get a free credit report through various services, such as Credit Karma.
3. Forgetting to Get Pre-Approved
Getting started with mortgage financing can be a daunting task. Getting pre-approved with a lender will give you a better understanding of what properties you can actually afford.
When it comes time to buy, having pre-approval will give you a leg up on other bidders that haven’t gone through the process.
4. Rushing the Process
Whether you’re buying a home or an investment property, generally rushing the process is a mistake that will begin a domino effect into other mistakes.
Take your time to research a real estate agent, lender, and any other professional assistance you might need. Doing so can save you tons of time and stress.
During the financing, shopping or buying processes, don’t be afraid to ask questions. As a property buyer, knowledge is power, especially if you plan to buy more in the future.
5. Skipping the Inspection
Speaking of rushing, don’t fall into the trap of picking a property and purchasing on a whim.
A proper inspection will reveal the true condition of even the most perfect-looking property. An inspector will look for specific things, like water damage, building code violations, and the overall shape of the property.
If conditions in the property need repairs, you’ll most likely be able to negotiate with the seller for a lower price to help you cover the costs for doing the repairs after you purchase the property.
Skipping the inspection altogether can cost you down the line for unknown repairs, such as wall cracks, water heater replacements or HVAC maintenance.
Happy House Hunting!
No matter where you’re in the process, avoiding these 5 property buying mistakes can spare you from stress headaches, extra costs, and wasted time. Contact us today for help in your home buying process.
Anthony Piccone is President of 7th Level Mortgage, LLC. A recipient of the South Jersey Entrepreneur of the Year award, he has more than 28 years experience in the financial services industry, and founded 7th Level Mortgage LLC in 2012. He first entered the financial market in the residential loan industry in 1995, with National Future Mortgage. Since then, he has become certified in Life Accident and Health Insurance.