As per the data obtained from the National Association of Realtors, USA around 5.34 million existing houses and 682000 newly constructed homes were sold in the year 2019.
Yes, every year, many people initiate towards purchasing a new house. Purchasing a dream house has always been exciting. But on the other hand, the eagerness to have your own home can also give you a headache if things are not carried out carefully. No matter whether you are the first-time purchaser or a homeowner looking to improve the current lifestyle, around 6 out of 10 buyers end up making common house hunting mistakes all times
Are you also looking for your new home for a worthy investment of your savings? Simply scroll down to learn about the common mistakes you need to avoid while selecting your house.
Tips for Basics of Home Buying
Buying a house can be thought-provoking, especially for first-time buyers. The entire process comes with various requirements, tasks, and steps that might lead to mistake you might end up with later. Here are some basic things you need to keep in mind while purchasing the house.
- If you are purchasing the house on mortgage, make sure you have a pre-approved loan on hand before searching for a house.
- Make sure you have a strong credit score for getting the best loan in your favour.
- Before selecting any lender, make sure you inquire about various lenders and compare them to select the right lender for your property.
- Make a list of all the amenities you are looking for in your next house to select the right house as per your family requirements.
- Decide your budget and work on a favourable EMI amount to decide your monthly debt considering the private mortgage insurance, property taxes, homeowners’ insurance, and mortgage payment.
- Go for a professional home inspection service before buying the house you finalize to work on the repairs required.
- Purchasing a home comes with a complicated documentation task, so make sure you are ready with all the required papers and documents before contacting the lender.
The Top Common Home-Hunting Mistakes to Avoid that Generations Make
To help you pass out the home buying journey with ease, here is the list of the top common house-hunting mistakes when buying a home that you need to look after and avoid.
Never Rush through the Home Shopping Process
Shopping for a home comes with a tedious process you need to know before diving in the pool for the right house. Purchasing a house isn’t as easy as getting your favourite fruits in your basket. You need to be ready with a strong financial decision that would get you the right house in your errand. Are you having sufficient savings on your hand? Do you have down payment ready in cash? Do you have a strong credit score? Are you ready with a pre-approved loan for a mortgage? All these questions need to be answered before you step into the real estate market and look for a house.
Mistake of Judging the Homes Based on Photos while Buying a Home
Images are where most of the people get mistaken. We all are habituated to high definition images available on different house-hunting websites. But have you ever checked the reality of that image? The professional images available on the internet are exclusive and hence, many sellers deny using them while selling the house. Sometimes, it is also possible that the sellers use the images to get into the market of real estate quickly. But rather than getting attracted to the images, it is advisable to check the property in-person before finalizing any deal. So, once any image on the house-hunting websites seems to be your dream house, visit the property and check the house thoroughly.
Partnering with the Wrong Real Estate Agent while House Hunting
Do you know, around 7% of the potential buyers purchase a house straight away from the homeowner? This means more people depend on the real estate agents, but not every agent helps you with the right advice or assistance while hunting for a house. In today’s digital world, not only the home hunters but even the real estate agents rely on digital hunting tools and use the information provided on the internet while selecting the right house. This can be a game-changer in the process of home-hunting. The best real estate agent needs to have a piece of deep knowledge and local insight of the entire area, provide objective advice, should pay attention to the inventory, etc.
House Hunting Mistake of Not Applying for a Pre-Approved Mortgage
Before starting with the home-hunt, it is very important to have a pre-approved loan on hand. This would make the entire process of hunting easy and quick. Having a pre-approved loan helps in learning about your budget for purchasing the house. Through the mortgage figures, you can get a realistic budget for searching the homes that fit it. This also saves you from the guilt of not purchasing the house you are admiring. Again, make sure you are holding a pre-approved loan, and not a pre-qualified loan as a pre-approved loan gives you a maximum amount you can spend every month on the house or mortgage.
You can know about how to get mortgage approval in detail from here.
Not Researching Your Neighbourhood a very Common House Hunting Mistake
Found your dream house? Congratulations! But disappointed with your neighborhood? This is surely the wrong decision. Many home-owners regret the decision of purchasing a house due to a lack of proper research, amenities, neighbourhood problems, etc. When you inspect a house, it is equally essential to check out the neighbourhood, commute with the neighbours, and check out the local amenities before finalizing the house and making a deal. Spend the required time there and feel the place, talk with the neighbours, etc. See if the neighbourhood is as per your needs and easy to get familiar with.
Buying a Home should be a Family Decorum
Just as it is not advisable to take too many people along for a home inspection, it is also advisable not to go alone while selecting a house. In a family, every individual comes with different requirements that need to be considered. The structure and the culture of the family also matter while selecting a house. Where the female of the family would be worried about the availability of the amenities, the children would be looking for a place where they can use parks and gardens to enjoy. So, make sure you involve s all family members while purchasing a house so that everything is well looked after.
Did not Check Your Credit Score before Making a Decision of Purchasing Home
Do you have a strong credit score that supports a good loan amount for your next house? Just as having a good amount on hand is important when looking for a house, similarly, having a strong or even a good credit score is essential. A good credit score will help you get an appropriate interest rate. So, if you are not having a good credit score and history, start working to improve it from the very moment. If you are not holding a good credit score, open an account like a credit card before applying for a mortgage.
Failed to Negotiate while Purchasing a Home
Negotiation is must when purchasing a house, and if you fail to negotiate for a good price, you might end up paying much more than the actual price. For negotiating on the price of the house, make sure you are aware of the real estate prices in that particular area. While inspecting the house, count on every possible repair as that too helps in negotiating with the price of the house. Again, negotiating on the price of the house will help you get the best house in your budget. So, make sure you don’t forget to negotiate on the house as it is beneficial in many ways.
Selected the Wrong Type of Loan while Buying Home
While selecting a loan, there are two things you need to focus on, that is, the principal amount and the interest charged. Again, the loans are available with a variable interest rate, fixed interest rate, and split loans. Apart from all these, you can also select from bridging loans, floating rate and construction loans while looking for a house. Mortgages are also available from private lenders as well as government bodies like banks. And when all these are not considered, you might end up selecting the wrong loan type and fail in saving a good amount in terms of EMI. Hence, make sure you go through all the loan types and compare them before finalizing a lender to end up with the right loan.
Did not Factor in the Resale Value of the House
Many buyers purchasing their dream house for the first time lack the required cash, and hence, counting on the resale value of the house becomes essential for them. Look for a house that builds you good equity in the future. For this, concentrate on the surrounding facilities and amenities like shops, restaurants, neighbourhoods, etc. Improve the condition of the house with hardwood floors, granite, new carpeting, etc. When investing in a house, it is important to focus on the future returns and resale value for having a good deal in your account.
To Rightly Assess – Replacement Capacity & Down Payment
Borrowing money from a lender or bank is easy, but when it comes to repayment, it’s surely hard. And one of the common mistakes made by the buyer is avoiding the calculation of down payment and replacement capacity due to which they end up paying from their savings. For having the down payment and repayment amount in your budget, you need to start working on the home expenses, grocery bills, monthly bills, insurance, leisure expenses, etc. This would help in coming to an affordable down payment amount and help in reducing the mortgage amount which comes with a great impact on the mortgage amount.
Apart from this house hunting mistakes, some other things are also there to keep in mind regarding cost while buying a house. Check this blog out,
You Must Stay for a Long Time
Many people are prone to make quick decisions even when purchasing a house. As a result, they end up in a house which they want to change again as soon as possible. Timing is essential when purchasing a house. One shouldn’t jump to any decision rapidly and shouldn’t also take too much time for making a purchase waiting for the right house. Rather than getting involved in multiple offers, select the right offer for your house, see the house ASAP and end up with a final decision. You are going to live in the house and in that city for long-term, so make sure don’t rush into any deal and end up regretting the decision.
Which is the Best House Hunting Websites?
As the world is getting digitized, many people are now looking for online sites for home-hunting. Looking for a house online can be exciting, but only if you are on the right site. As many websites are providing with such facilities, here are some house hunting websites that can help you with the best home deals.
- Realtor.com
- Homefinder.com
- Trulia.com
- Homes.com
- Forsalebyowner.com
- Zillow.com
- Lotmix
- Magicbricks
- Housing.com
- 99acres.com
- Commonflooor.com
- Makaan.com
- Quikr.com
Using any of these sites for home-hunting would make your process quick, easy, and energetic. The journey might take long, but you are sure to end up with the right and suitable home as your asset.
Some Important Tips to Remember while Buying House
- Make sure to take an agent with you when visiting an open house.
- Focus on the house, neighbourhood, available amenities, etc. while selecting the house.
- Keep in mind your current and future needs as well as family development while purchasing the house.
- Take time in selecting the right real estate agent to have the right one with you while making deals.
- Keenly observe the entire documentation process and check the documents twice before signing them.
- Check on the logical side of the house while purchasing along with getting emotionally attached with the house to work on the repairs, interiors, furniture, etc. before purchase.
- Hire a professional home inspection service and inspect the entire house from inside and outside to count on the repairs required and other essential things while making a deal.
- While closing the deal, ask for a home warranty from the seller including repair and replacement of the systems and appliances.
Conclusion
To sum up, the blog there are tons of house-hunting mistakes to pay attention to while selecting the right house is a tough job. But by working on the mistakes listed above, and preparing for every possible hunting aspect, you can limit or even avoid the mistakes. Looking for some professional guidance, objectifying the search and accurate research are the key ways to settle down with the best deal in your pocket.
Hope this list of mistakes when buying home helps you with a step-by-step strategy to invest in a house smartly. For more details on home-hunting, get in touch with our professional team of experts who help you reach your dream house.
Author Bio
Sai Charan Gundreddi – Sai Charan Gundreddy is an author and a freelance content writing specialist with over 3 years of experience in the field. A writer by day and a reader by night, he is loathe to discuss Hinderer in the third person, but can be persuaded to do so from time to time.