The San Diego Real Estate BLOG
Buying a Home #7:
Mistakes to Avoid
Now that we have walked you through what a typical home-buying scenario looks like, we would like to point out a few of the common mistakes that buyers make so that you can avoid making them yourself.
While the home-buying process is fairly complex, it is also an every day affair. Every transaction has its own little idiosyncrasies and unforeseen bumps in the road, but the typical escrow actually tends to run very smooth.
However, it is entirely possible to shoot yourself in the foot before, during, and even after the actual transaction has taken place, and that is what we hope to help you avoid.
If you you missed the first few posts in our series on the home buying process, you can catch up here:
Going It Alone
We have said it before, and we will say it again.
Buying a home is likely the largest single purchase you will very make in your lifetime.
Unless you know what you are doing, you could make a mistake you could regret for the next thirty years. You owe it to yourself to have a professional in you corner what knows what they are doing and is looking out for your best interests. We would LOVE to have every single one of you as our client, but even if you don’t use us, PLEASE do yourself a favor and use a licensed Realtor when purchasing a home.
Not Having Your Finances in Order
You absolutely MUST have your financial ducks in a row BEFORE you even start looking at homes or you WILL end up paying too much for your home.
This is one of a thousand reasons to use a Realtor, but possible the most important.
Have you checked your credit, but done so BEFORE applying for a loan to make sure the soft hit on your score is gone before you seek pre-approval?
Have you gone rate shopping to ensure you are getting the lowest possible interest payments over the life of you loan?
Do you have a REALISTIC budget that takes into account things like closing costs, additional future costs of owning a home, and that leaves enough money in your savings to cover unforseen events after you placed a large (but not TOO large) of a down payment?
Have you done math to know what combination of down payment, rate, and discounts points saves you the most money over the course of your loan?
Oh, and you do know that you can’t open so much as a Home Depot credit card during escrow or you risk losing the whole transaction right?
Not Taking Advantage of Home Buyer Programs
VA, USDA, FHA, etc. etc. etc.
There are a TON of programs out there that have the potential of helping you get your home with terms you can afford. Be sure you know which (if any) is the best fit for you before you start shopping.
Falling in Love/Settling
If you show too much interest in a home, the seller’s agent WILL pick up on it. Playing your cards “close to the vest” is your best bet.
But sometimes the search goes the other way and months go by with various set backs people tend to settle on a less than ideal home just to get the deal done.
Don’t do either of these things.
Your perfect home is out there, stay the course, play the game, and you will end up happy in the end.
Skimping on the Home Inspection
A good, trustworthy home inspection is going to set you back a pretty penny.
Don’t lose the Forrest for the trees. This fee can cost you tens if not HUNDREDS OF THOUSANDS of dollars in the long run.
Don’t skimp here.
We hope that this guide is a useful road map to help you avoid some of the common mistakes made by home buyers. If you have any other questions, our would like our help purchasing STRONG San Diego dream home, be sure to contact us today.
Check back soon for the next BLOG in the series: Setting Up Your New Home
While you’re here, you might want to check out our previous post on Hosting an Air BnB
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