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Top Buying Mistakes
All too often making decisions in haste during the largest investment most people will ever make is a common mistake. Avoid making these costly mistakes.
Enlist the help of others - Buying a house is extremely difficult and complex. You need an agent, lender, lawyer, inspector, insurer as well as referrals and advice from friends.
Never buy at first sight - No matter how in love you are with the place, make a list of your needs and wants. Check out the neighborhood; make sure it fits your budget and requirements. Check the local schools even if you don't have children to make sure your resale value will be good.
Not getting prequalified - Being prequalified means a lender has verified your information and credit rating and agreed to loan you a specific amount of money. Having this puts you in a stronger position to put an offer on a house. It also lets you know how much house you can afford.
Overbuying - Even if you qualify for more money, can you afford the payments on it. Do a budget and analyze your monthly costs, debts, food, transportation, entertainment and savings. You monthly debts should not be more than 36% of your income before taxes.
Misplacing your trust - Never forget this is a business transaction. No matter how much you like the agent, sellers, inspectors or the guy down the block. Your decision is binding. Do your research and know your team's responsibilities.
Don't rely on oral agreements - Get everything in writing. Written agreements always trump oral ones. If the offer says the lawnmower is negotiable but the agent says it's included, then get it in writing.
Don't skip the fine print - Understand what you are signing before you pick up a pen. Ask for documents in advance so that you can read them and have questions prepared.
Don't bet on resale - Avoid buying a home that costs 50% more than the neighboring homes and don't buy the most expensive home on the block. Your neighbor's lower valued homes weaken yours.
Making an unconditional offer - have contingencies in your offer so that you can get out of the deal if things don't go right.
Home buyers remorse - there will always be surprises. No home is perfect. Don't let a few problems spoil he deal. Don't miss a great house waiting for the perfect one!
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