1) Choosing the Wrong Real Estate Agent
Don't make the mistake of choosing the wrong real estate agent with whom to work. This person will ask as your guide, searching for potential homes, contacting sellers and answering any questions you may have. A good real estate agent should also work to negotiate the best possible deal, which can subsequently save you thousands of dollars. Because of this, it's important to choose a trustworthy, reliable and experienced real estate agent.
2) Not Getting Pre-Approved for a Mortgage First
After you've determined how much money you can afford to pay on a mortgage, you should contact local banks to see if you can get a pre-approved. Once you are pre-approved, you can rest assured knowing that the bank will give you a mortgage; thus, you can shop for a new home with confidence. Furthermore, it shows sellers that you are serious about buying, giving you the upper hand against prospective buyers who aren't pre-approved for a mortgage.
3) Overlooking Additional Expenses
When considering your budget, you need to account for property taxes, insurances, repairs and other related expenses. When you buy a home, you'll be required to cover all major repairs. This, of course, differs from renting, in which the landlord is responsible for repairs. Additionally, some properties require buyers/owners to pay a homeowner's association fee. Ask your real estate professional about common expenses associated with the home you are interested in buying.
4) Skipping the Home Inspection
Whether it's required or not, you should always invest in a home inspection before buying a home. Even if the home "looks" well kept, there could be underlying issues with the electrical or plumbing systems. Only a professional home inspector can find these problems.
5) Not Shopping Around
Finally, don't make the mistake of buying the first home you come across that meets your criteria. Buying a new home is a big decision that usually means investing at least five years into staying at the residence (if you want to generate equity). So, always shop around and search multiple properties before buying.
