5 Dumb Home Buyer Mistakes - How to Avoid Them
- Not knowing how much they can afford to pay for a house before making an offer. Avoid this by getting preapproved for a mortgage by a lender. This way you’ll know in advance exactly how much you can afford.
- Not finding out in advance who the real estate agent represents. Avoid this by asking your agent. Most people think that their agent is working for them. But, unless the agent is working for you, as your buyer’s agent, with a formal agreement, they may just be representing the seller and acting in the seller’s best interest.
- Not realizing that getting the wrong mortgage for them and their situation can cost thousands of dollars in unnecessary interest, PMI, taxes, etc. Avoid this by consulting with your accountant and/or a financial planner before deciding which mortgage to choose. This way you can find out the long-term effects on your income and mortgage cost.
- Not discovering hidden defects in the home before buying. Avoid this by hiring a home inspector or licensed contractor to perform an inspection before buying.
- Not knowing how personal debt can will affect the ability to buy or refinance a home. Avoid this by asking your mortgage lender to help you to review and repair your credit in advance.