A major mistake that a lot of first time homebuyers make is to assume that everything in their house will work perfectly since it is brand new. But no matter how careful you are, there is no such thing as a perfect house and if you do not pay attention to a few important things, you could end up regretting the decision just by making a purchase looking at ultradeck. Everything may be in line with the builder’s punch list but problems could still come up. A lot of new homebuyers end the relationship with the builder because of a few things that are out of line. It is usually very late when the homeowners discover that the hot water tank is not adequate or the circuit breakers are shutting down when a few appliances are running together. You must be prepared for all the contingencies that may crop up at a later stage. And remember to always maintain a strong rapport with the builder. If you are planning to buy a home anytime soon, here are a few mistakes you should avoid.
1. Committing before the pre-approved loan
Do not make the mistake of committing to a property before you get a pre-approved loan from the lender. A lot of people start house hunting and instantly fall in love with a new house without being aware of the type of mortgage they are entitled to. Hence, they are at the whim of the builder’s salesperson who usually promise to finance and it is a problem that has been in existence for more than 10 years. This way, homebuyers end up taking a mortgage that is toxic and totally wrong for them. If you let your emotions make a decision, you will end up making mistakes. Model homes are dangerous and it is not a smart move to make a decision based on it. They are made to look perfect and are laid out to punch the right buttons in your mind. Naive buyers agree to the house when they have no idea of the monthly payments they can make and this could end up in a bad deal. The first thing you should do is shop for the right mortgage lender before you commit to the property and speak to a few lenders before making a decision.
2. Not getting estimates
The legal statute mentions that the mortgage lenders should provide buyers with a good faith estimate in three days of presenting a loan. It will break down the loan in component costs and the buyer’s annual percentage rate will be presented at the bottom of the contract. You can compare the loans using the APR. It is a method that tells you the exact cost of the loan including the closing fees. It will allow you to compare the different rates offered by lenders. When you visit different lenders, you get different estimates and you can then compare the APR to choose the cheapest option.
3. Not negotiating the terms
Many new home buyers fail to negotiate the terms of the loan. They are not ready to disagree but negotiations are not always hostile. You are negotiating the most important purchase of your life and you need to speak up for it. If you do it professionally, it will work in your favor. Everyone negotiates and it is a part of the mortgage process. You need to feel good knowing that you have understood the numbers well and are not making a mistake by signing the mortgage. When you contact the lender and feel it is a good deal, you can ask for an estimate and then make a thorough comparison. You hold the power hand in negotiation and you can work your way to get the best deal in your means. Before you sign on the documents, learn about reverse mortgages and read the reviews on https://reversemortgagereviews.org. This will prepare you for the mortgage and the alternatives in the long term.
4. Failing to have a home inspection
Do not make the massive mistake of skipping the home inspection by an independent professional. It will put you in trouble at a later stage. When you have an independent professional for inspection, a lot of design flaws can be uncovered. Do not assume that the new homes are perfect and bring your own inspector. It will not cost a lot and will be worth every cent in the end.
These are some of the top mistakes that homebuyers make and you shouldn’t. No matter how perfect the home looks on the outside, you need to ensure that an inspection is performed and do not rush the process. Remember to negotiate the terms of the loan and always make a thorough comparison. Buying a home is not only about choosing the right property but also about choosing the right lender and negotiating the terms of the loan to get an ideal deal.
