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Pitfalls to avoid when buying a home

What are some pitfalls to avoid when buying a home? One pitfall to avoid when buying a home is to make sure you have a home inspection done on the home, especially if the home is not a brand new construction home. Do not let the bank, the Realtor, the seller, the mortgage professional, etc... talk you out of it. Having a home inspection done upfront can prevent you from making a huge mistake and buying a home that may possibly become a money pit. A home inspection may also catch some minor items that need to be fixed so that you can have the seller fix those before the sale of the house will be complete.

Make sure you are not overpaying for the property. Sometimes, your emotions can come into play, and you won't realize that you are paying too much for a property. If the property has been sitting on the market for a long time, it's likely the sellers will accept a lower offer. Look at comparable sales in the neighborhood, and determine how much houses are selling for in that neighborhood. Base your offer on these figures.

When buying a home read, read, and re-read your purchase agreement!! It is extremely important that you know what you are signing, and all the conditions of your agreement.

Be sure to take into consideration all of the new expenses you will have when buying a home to ensure you can afford the new monthly payments. Mnay people find themselves surprised by some of the additonal bills they are responsible for such as electric, gas, water, trash, etc.

Don't let your family, real estate agents, or bankers talk you into buying more house than you can afford. You are the only one who knows if your monthly payment is going to be a blessing or a burden. If you know exactly how much you can afford for a house payment then insist that your loan officer and Realtor work together to find you the home that fits.

When making an offer on a property you definitely need to answer certain questions. Is the property in a good neighborhood? What are the needed repairs? Does this property currently meets your needs and that of your family? When deciding of what you should offer, you should consider any repairs or renovations you would have to make to bring the property up to par. The property may need a new roof, has a dated kitchen with old appliances, new floors, or anything for that matter that you can discount from the asking price.

Ordering a home inspection is a relatively inexpensive way of finding out just what all may be amiss with your new home. Every thing from leaky faucets to sever septic tank issues will be uncovered by a good home inspector. Savvy buyers sometimes use the issues uncovered in the inspection as a negotiating tool to get a better deal on the purchase.

When buying a home it is very important to get answers on anything you are not sure about. This is one of the most important decisions you will make during your lifetime. It is important to ask questions and get answers from the people that you trust such as a friend, real estate agent, or loan officer.

Be extra careful when buying a home and the agent is representing both you and the seller. Keep in mind there is a lot of commission being generated by this agent. If you have an issue with paying for an inspection (this is STRONGLY ADVISED) then often the agent will help with the cost.

A common pitfall people make when buying a home is not understanding the hidden costs of homeownership. Suddenly your paying for water, garbage, sewer, taxes and insurance etc... All of this is above and beyond your mortgage payment. Make sure you discuss the true cost of homeownership with a mortgage professional prior to purchasing a home.

For more information regarding this topic, please call Mike Williams at 516-921-9000 or email mwilliams@northshorefunding.com.