Buying a home is one of the most important investments you can make. While it’s an exciting process, there are some common home-buying mistakes to avoid to ensure you get the best deal and end up with a house that fits your needs and budget. From not getting pre-approved for a loan to skipping the necessary inspections, there are a few pitfalls that you should be aware of before signing on the dotted line. Here are six common home-buying mistakes to avoid:
1. Not Getting Pre-Approved for a Mortgage
Before you start looking for a home, getting pre-approved for a loan is important. This will give you an understanding of how much you can afford and assure the seller that you’re serious about buying a house. Without pre-approval, you could end up in a bad position if you make an offer on the home and cannot qualify for a loan.
2. Common Home-Buying Mistakes: Skipping the Home Inspection
It’s important to hire a certified home inspector to check out the property you’re interested in before closing. An experienced home inspector can look for any signs of structural damage, pests, or electrical issues that might affect your decision. Skipping this step could cost you thousands if major repairs are needed after you move in.
3. Not Considering Future Needs
When you begin the home-buying process, it’s important to consider your future needs. While it may be tempting to purchase a smaller home with lower upfront costs, it’s wise to think ahead in terms of family size and lifestyle changes that might require more space down the road. If you buy something too small, you might regret it when you have to go through the process of buying another house.
4. Failing to Research Neighborhoods
Before you commit to a home, make sure to research and visit the neighborhood a few times. Consider factors like local schools, crime rates, commute times, and amenities that are important to you. If you don’t, you might find out too late that the home isn’t in an ideal location.
5. Common Home-Buying Mistakes: Making a Lowball Offer
It’s important to be realistic when making an offer on a home, especially if it’s already priced well below market value. A lowball offer can put you in a bad bargaining position and may make the seller less likely to negotiate. Your offer should be fair and based on current market conditions.
6. Not Having Contingencies in Place
When you make an offer on a home, it’s wise to include some contingencies in your contract. This means that the sale will be contingent upon things like if the appraisal comes back with sufficient value or if certain repairs are made prior to closing. Without these contingencies in place, you could end up stuck with a home that isn’t what you bargained for.
By avoiding these six common home-buying mistakes, you can make sure that your home purchase goes as smoothly as possible. An experienced real estate agent can also help guide you through the process and provide advice along the way.
Danny Inspections provides home inspection services to customers in the Chicago area. Contact us to schedule an appointment.