31 House Hunting and Home Buying Mistakes You Can Easily Avoid
House hunting is an anxiety-filled process, but it goes a lot smoother when prepared. See what to avoid with this house-hunting checklist.
Buying When You Should Rent
Buying a house isn’t always the best option. If you’re not planning on staying in a home for more than a couple years, renting may be a better option. You’ll also need to consider your personal finances—you may be able to afford your monthly mortgage payments but can you afford unexpected repairs such as a flooded basement or damaged roof?
You’re Not Pre-Approved
If you want to be taken seriously in your home search, you need to be pre-approved by a lender. This will tell sellers that you’ve taken the necessary steps financially to qualify for a mortgage. In some markets, Realtors won’t even work with buyers who haven’t been pre-approved.
Down Payment 101
The days of putting zero down are gone. At minimum, depending on your lender, you’ll likely need 5 percent of the selling price as a down payment. Also, consider the fact you’ll want to keep some money on hand for closing costs and for an emergency fund. If you can’t put 20 percent down when buying a house, you may need to pay private mortgage insurance (PMI) so it’s best to understand the down payment terms.
It Was Love at First Sight
It’s important to look at a few houses so you can compare pros and cons. If you love the first home that’s great, but look at multiple homes. When you look at more homes, you’ll get a better understanding of your options, likes and dislikes.
Know Your DIY Limits
When it comes to buying a house that needs repairs, consider what you’re willing to deal with and what you’re not. Perhaps you feel comfortable purchasing a home with an old roof, but lead paint isn’t an option for you. If the home needs some work, understand the costs associated with the needed repairs.
Know What You Can Live With and What You Can’t
If this is your first home, consider what you can live with and what you can’t. Perhaps the kitchen isn’t ideal, but you know a few appliance upgrades will do the trick. You wanted two full bathrooms, but can you live with one and a half? Know your must-haves.
Buying in the Wrong Season
Judging a Book by its Cover
Jumping the Gun After One Viewing
Skipping the Inspection
Ignoring Old Paint
Skipping the Final Walk-Through
Not Being Neighborly
Trying to Make it Work
Forgetting About Future Development
When you have a specific house in mind, think about potential developments. For example: If the home is near a busy road, will there be expansion in the near future? If there is a lot of open space around the home, will more homes be built in the area soon? If there are several homes for sale in the neighborhood, are they selling quickly and who’s moving in? It may be difficult to find concrete information about future developments, but keeping some what-ifs in mind as you look can help you find your ideal home. Also, keep in mind the potential resale value of your future home because no one knows what the future holds and you may need to sell earlier than you imagined.
Learn about some of the best and worst projects to improve resale value.
Finding Out the Commute is Too Long
At a certain point, a commute becomes a burden. If your commute is taking valuable time away from your family or personal goals, look for a home closer to your work. It may be worth it to downsize to a smaller home instead of losing too many hours out of every workday.