Planning something big can be such an exciting experience, and it can be even more remarkable when planning to buy your first home. The count down to the day of purchase is going to be filled with planning, meetings, and a lot of research. You share the good news with your friends and family and as a result, you are stormed with a lot of advice and suggestions. For some people, they might feel some doubts about making such a big move, yet this is understandable. The fear of making a mistake on an investment that requires such a huge amount of money can be frightening.
Any form of purchase typically requires some form of research; as it is a good idea to get all the information you can before making a final decision to buy. This same process applies to buying a home. It is unfortunate that many people ignore the basic “rules” that guide the real estate business and they end up making regrettable mistakes when they buy their first home.
In this article, we will highlight some common mistakes made when buying a house in Sarasota or anywhere else.
Neglecting Professional Advice and Assistance
Buying a home might seem like a simple task, so some first time home buyers try to tackle it on their own, hoping to get a better deal on a property, and walk right into an arena they practically know nothing about. The way such a story mostly ends – is that a realtor is contacted to help make the amendments. This will cost even more money in the end because errors will require additional expenses to rectify. This sort of situation could have been avoided if the home buyer had educated themselves on the home buying process before making a final decision.
Failing to Create a Budget
Prior to your home search, you should create a monthly budget which includes all of your expenses. This will determine what you can afford in a home. Being pre-qualified or pre-approved for a mortgage is the best way to determine what your estimated monthly payments will be. If you make the mistake of purchasing a home which will require a large amount of future repairs, it can put you in a difficult financial situation down the road. Budgeting is an important part of healthy home ownership.
Using the Wrong Mortgage Lender
As a buyer, you should shop around for lenders and select one who is professional, well organized, and able to meet contract deadlines. Decide what type of lender best fits your needs — a small lender or a large lender. A smaller lender will more than likely provide you personal attention, yet a larger lender may offer better interest rates. Recommendations from your real estate agent, family, and friends who purchased a home recently are good ways to find reputable lenders. Once you decide on a lender, do your research by talking with past clients or researching them online.
Buying a Home Based on Your Emotions
This is a bad idea! Once you are under contract, there is a possibility that you will begin to see many things that you don’t like about the house. Home sellers can be creative with their initial renovations performed to make the house look great at the first appearance while hiding flaws. Always look for value; you can always design the house to your taste afterwards.
Real estate deal can be ridden with many hidden charges or expenses when buying a home. Other expenses when buying a home include the cost of a home inspection, an appraisal, a survey, title services, credit report fees, lender points, and government recording charges to name a few. You are putting yourself in a difficult situation if these charges are made known to you after you have committed yourself financially, and at a time when you cannot back out. Only use the services of real estate brokers who have a remarkable reputation to protect. When in doubt, contact Ursini & Company.
It is a bad idea to rush any purchase. You should always take your time to conduct good research. Failing to plan will only lead to many mistakes. Buying a home is a long term investment; and you might have to live with those mistakes for many years.
Mistakes can be avoided when you are armed with the right information. If you find yourself in a situation where you are too busy to do this the right way, you should engage the services of a reputable realtor in Florida to handle the purchase of your home. This way, the entire transaction will be handled by professionals who will have only your best interests at heart.