If you are among the thousands who are looking for homes in this economy, you are in luck. Prices for homes are quite low that you won’t have any problem landing a home that is worth its price and even more than its value. However, you can still make a few mistakes that can cause you to lose a chunk of your investment.
Here’s a short list of common home buyer mistakes you shouldn’t make.
Mistake #1: Waiting for the prices to go down
Experts say that you never know when real estate prices will go up or down. Also, interest rates can still go up even with low real estate prices so you still pay basically the same amount in the end.
Mistake #2: Picking the wrong town or neighborhood
Picking the wrong location can affect your chances of reselling your home in the future. The location should meet your needs and should have easy access to schools, stores, shops that you like, and various points of interest. The neighborhood should have a characteristic or feature that you like.
Mistake #3: Shopping without being pre-approved
Often times, new home buyers will begin house shopping without being pre-approved. According to Edmonton Real Estate experts Sterling Realty, “Sellers love buyers who are pre-approved because it shows that you’re serious about purchasing a home”.
Mistake #4: Buying a fixer-upper on a budget
Do not buy fixer-uppers on a budget if you do not have the money to fix the home to avoid ending up with a worn out piece of property with low resale value. Buying a fixer-upper in a total state of disrepair can cost twice what you paid for in the sticker price. If you buy a home that has a lot of problems, expect that you will also inherit its problems later on.
Mistake #5: Buying a car before a house
A large purchase prior to applying for a home loan can reduce your credit score considerably. Lenders tend to check your credit score weeks before closing, so it is better that you build a good credit score first before approaching a lender for a home loan.
Mistake #6: Falling in love with the decor
Avoid buying a home solely for the decor. Prioritize the location as well as the condition of the property since you can easily do renovations to a home that fits your foremost requirements.