7 mistakes buyers make before starting house hunting

January 29, 2018

 

 

1 Not finding out your credit score

The best house-hunting intentions will all come to a halt if the buyers do not have a credit score sufficient enough to obtain a mortgage. Most lenders will not approve a mortgage if an applicant has a credit score below the good to excellent range.

It’s a good idea for would-be buyers to get their credit reports about a year in advance of house hunting. Credit reports can be wrong, depending on the source the buyers choose, and it might take time for you to correct your scores.

2 Not getting pre-approved for a mortgage

Prospective home buyers should get pre-approved for a mortgage before they start to look, for 3 reasons.

  1. Avoid heartache if the home buyer is not approved for a mortgage once they ‘ve found the house of your dreams.
  2.  Actually improve your chances of falling into the sellers’ good graces, so you want to get it done as soon as possible in the home-buying process.

 

3 Not having a viable budget

Planning planning, other costs of homeownership — property taxes, state and local taxes, utilities, upkeep and private mortgage insurance (PMI). And that’s just for after the purchase.

Before the purchase, homeowners should plan on appraisal (between $200-$425) and inspection costs (the national average is around $325).

Homeowners need to budget for all homeownership costs and have money saved up for repairs.  Also home bueyers should have a cash cushion of at least three months’ income in case of unexpected costs early in their home ownership.

4 Not getting a sense of the neighborhood

Neighborhoods matter. Homebuyers need basic information about the neighborhood. Each neighborhood has it’s own mini culture. Will you feel at home among their neighbors?

They can walk around on the weekend to get a sense of it. A couple of things buyers should ask are:

  • Does it have open green space, parks and hiking trails, (if that’s important to you)?
  • Will you be close to major highways and public transportation?
  • Is the neighborhood safe, or does it have crime issues?
  • Are the school districts good?
  • How is shopping?

The answers to these questions will help you decide if the neighborhood is the right fit. This is especially important for buyers who are relocating to a new area.

5 Not deciding on the kind of home they want

Make a list of the type of home and property you want, suitable for your budget of course.

This will eliminate future financial strain as your budget .

6 Not knowing what their land is zoned for

If you purchase land, it’s essential they know how it is zoned. Zoning regulations change frequently, so you need to know of any recent changes, and you shouldn’t rely on older paperwork.

Zoning can be a real issue if you want certain additions to the property later. It can also be an issue if you have a home-based business or want to start one at some future point.

7 Not getting the inspection results before they fall in love

It’s not uncommon for homebuyers to see a house, fall in love with it, and essentially, make the decision before they really know the property’s true condition.

A house and grounds can look fine with no visible problems, but have issues an inspection will surface. These issues can include costly structural concerns and health concerns that may make the house uninhabitable.

No homebuyer should make a final decision until the inspector has ruled.

Source  Inman

 

 

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