For most people in Illinois, buying a home is one of the largest purchases they ever make. To ensure the home buying process is successful and that they are happy with their house for many years to come, there are four main mistakes future homeowners should avoid.
Failing to get a mortgage preapproval
When the decision to buy a new home is made, many property buyers get extremely excited and start looking at their real estate options before acquiring a mortgage preapproval. This can be problematic for buyers if they fall in love with a particular home and then later discover that they cannot afford it. A preapproval helps buyers understand their price range so that they can tailor the viewing process to homes they can actually purchase.
Considering only what the home costs to purchase
During the home buying process, many purchasers merely focus on how much capital they need for a down payment and the sale price of the property. However, there are many other fees associated with the buying process that future homeowners need to account for. These may include closing costs, property taxes, an appraisal fee, legal fees and homeowners’ insurance.
However, the costs of home ownership don’t end after the purchasing process is over. Prospective homeowners should also budget for ongoing insurance, property taxes, monthly utility bills and expenses related to maintenance and repairs in addition to their regular mortgage payment.
Forgoing the inspection
In a real estate market that moves quickly, those in the middle of buying a house may be tempted to skip the inspection process to make their offer more appealing to the seller. However, failing to have an inspection done is a mistake that could end up costing homeowners significantly in the future. Although having an inspection done may slightly slow down the purchasing process, it can alert buyers to issues with the property, such as structural problems that they wouldn’t ordinarily be able to spot during a simple walk through, so that they know exactly what they are buying.
Including too many contingencies
While some contingencies are necessary in a purchasing contract, including too many may cause the seller to revoke their acceptance and find another buyer. Buyers should keep in mind that they can still make a competitive offer without including an overabundance of ways to get out of the contract if something goes wrong.
Avoiding these crucial mistakes can save home buyers time, money and hassle during the buying process and after they purchase the property. Those in the middle of buying a new home may benefit from consulting with an attorney who can provide legal guidance throughout the duration of the process.
