Local Area Markets

This is a continuation from my first blog of mistakes people make when buying there first home. Here are a few more common mistakes people make:

Always look out for misplacing your trust. No matter how much you like the people around you who are assisting you remember that you are dealing with a business transaction. Make sure to do all your own research first hand so you are not relying on other people to tell you the truth.

Another mistake people make is not getting everything in writing. Just because you think you have an oral agreement does not make it binding unless it is in writing!

Always look out for the fine print! Before you sign anything take the time to read through all of the fine print and ask questions before you sign anything.

Never buy a home that cost 50% more then the other homes in the neighborhood. The lower home values around you will bring your home value down. Make sure to research the neighborhood pricing.

Protect yourself by having at least 2 of these 3 contingencies in your offer. Mortgage Financing- make sure you have a formal appraisal of the home. If the house appraises for less then the amount of the loan the loan may not go through! Inspection- never buy a home with out having it properly inspected. Listen to the concerns of the inspector before making a decision. Insurance- make sure that you can get the proper coverage of home insurance.

What are some of the mistakes people make when they are buying there first home? I wanted to find out the most common mistakes, to warn anyone who is reading this!

The first mistake is going through the process alone. Even if you do not choose to go through an agent you still need to consult with a lender, lawyer, insurer, and friends and family to help you through the process!

A second mistake is buying it the first time you see it! Before you go and buy the first thing you see you will want some research behind your belt! Before you start to look make a list of your budget, what you want in a home, what neighborhoods would work the best for you and your family and then you can start to look at the houses that fit that criteria! You do not ever want to make the mistake of falling in love with a home you can not afford!

A third mistake is not getting pre-approved before you go house hunting! Getting pre-approved means that a lender has looked at your credit rating and has agreed to approve you for a certain amount to buy a home with. Once you know how much money you are going to be able to spend it is a lot easier to go house shopping in your budget!

A forth mistake is barrowing too much money! Just because you qualify for a certain amount of money, does not mean you can afford that amount of money. Make a list of all of your daily activities that cost you money debt, entertainment, transportation, food costs, ect. You always want to make sure that when you pay all of your debts you do not exceed 36% of your income and that is before taxes!

Well I hope the awareness of these mistakes will help you the next time you are in the market to buying a first home!