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Buying a home is one of the most important investment decisions you’ll ever make. A home is also personal, causing some buyers to make emotional decisions that negatively affect their bottom line.
When it comes to investing in a home, avoid these six mistakes with home shopping and opt for a good home shopping strategy.
1. Neglecting Your Credit
Your credit score does more than ensure a loan. It also determines how much your loan costs. A good credit score equals thousands of dollars in interest saved over the life of your mortgage.
Get your free annual credit report from the three major credit bureaus from annualcreditreport.com. Look for outdated information, incorrect information, and accounts you didn’t open. Get the issues resolved as soon as possible.
Do you have any outstanding accounts? Get them paid off before applying for a loan.
2. Using Your Heart Instead of Your Head
Make a list of your dealbreakers before you look for a home. Do you need good schools? How about a local grocery store?
How many bedrooms and bathrooms are a must? Buying a home often means compromise but don’t buy a home only because you walked in and your heart had to have it.
Make your decisions based on how well the home serves your needs, the quality of the home, and the surrounding neighborhood.
3. Foregoing a Buyer’s Agent
It’s tempting to use real estate sites and go it alone. That’s a mistake. There’s no substitute for an experienced real estate agent with local knowledge such as the agents at choosemarbella.com.
The buyer’s agent guides you through the entire process and has a legal obligation to look out for your interests. The agent’s fee comes from the seller, so there’s no reason not to use a buyer’s agent!
4. Ignoring All the Costs
When comparing home prices and options for houses, don’t make the common mistake of ignoring all the costs. Look at the whole financial picture, not only the monthly mortgage.
Homes come with lots of expenses. These include:
- Mortgage
- Property taxes
- Homeowners insurance
- Water bills
- Sewer bills
- Home maintenance and repairs
Your agent can help you develop a realistic estimate of all the costs. First-time buyers often overestimate what they can afford.
5. Forgetting the Appraisal
In competitive markets, it’s tempting to offer more than the asking price. If the appraisal comes in lower than your offer, you’ll need more cash upfront to close the deal.
Lenders won’t give you more than the property appraises for.
6. Foregoing the Inspection
Always get a professional inspection before closing on a home. It’s easy to overlook home defects that turn into expensive repairs down the road. A professional knows what to look for and can save you from making a bad investment.
Avoid These Common Mistakes With Home Shopping
Avoid these common mistakes with home shopping and rest easy after buying your home. Always use an experienced buying agent to guide you through the process, and enjoy your new home!
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