3 Home Buying Mistakes To Avoid When Purchasing Your Next Home
Purchasing a home is a big decision and involves a lot of your finances. This is definitely a situation where you want to avoid as many mistakes as possible. The best way to do this is by taking your time and hiring an experienced Realtor. Beyond that, here are a few mistakes to be aware of so that you can avoid them when buying your home.
Not Understanding Your Credit Score
Many people wait until they are ready to start home shopping before ever taking a look at their credit score only to be surprised and disappointed. A low credit score can mean higher interest rates and higher monthly payments. A really bad score can even mean no loan. Plan ahead and take a look at your score 6-12 months before home shopping. This will give you time to correct any errors or fix any of your past mistakes.
Spending Your Maximum Amount On Financing
Just because a mortgage provider approves you for $300,000 doesn’t mean you should be spending $300,000. If your job isn’t stable, if you have other expenses or if you even have other savings goals, spending your maximum amount may not be a good idea. Spend an amount that is well within your budget to avoid future problems and allow for life’s unexpected turns.
Not Knowing Your Neighborhood
So you have found the perfect home, but what do you know about the neighborhood? Start with finding every comparable home on the market currently and ones that have sold in the last 6 months. This will give you an idea of a proper price to offer for the home. Next, visit the neighborhood at different times to see it in the evening, weekend and weekdays. Last, do some online research, you’ll be surprised what you can find about a block, neighborhood or city.