5 Fatal Mistakes When Buying A Home

#1 Buying the wrong house

It can be tempting for the buyer to convince themselves that they can do without an extra bathroom, or can pay more than they anticipated, because they have fallen in love with a particular property. In the cold light of day, they may not be able to manage with a smaller property, or a larger mortgage. To avoid this situation, write down all of your requirements, essential and desirable, and don’t move on the essential ones!

#2 Not using a professional appraiser

For the sake of $300 or $400 people fail to obtain an appraisal of the property they are buying. This can turn out to cost them thousands of dollars if they later discover defects that a professional eye would have recognized. It is not enough to rely on the lender’s appraisal-that is done for different purposes and is to protect the lender, not the buyer.

#3 Failing to consult a mortgage broker or financial adviser

A financial professional will advise you on much more than just the best lender to use: he will review your financial circumstances and advise on anything that needs to be done to improve your chances of being granted a mortgage, such as cleaning up your credit. This may also reduce the interest rate the lender will charge.

#4 Not working with a buyer’s agent

Many buyers believe that the agent showing them properties is working in the buyer’s interest but nothing could be farther from the truth. They are working for the seller, either directly or indirectly as they are paid when the property sells. A buyer’s agent on the other hand is representing the buyer and will protect their interests.

#5 Sticking out for the perfect home

Your ideal home may not exist so you have to decide on what issues you can compromise without restricting your quality of life or budget. Buyers who have insisted on waiting for the perfect home have often seen prices escalating so that they ultimately have to settle for less house than if they had bought earlier. This is a clear case of the best being the enemy of the good!