Mistakes to Avoid When Buying a Home

Biggest thing I see is a home buyer who thinks they know what they are doing, even if you have bought a dozen homes, you are probably not in the ‘market’ every day. It would be similar to getting on a medical site or a ‘how to carpenter’ site, the problem here is I am not trained as a doctor or a carpenter. I may have built a deck or repaired a sink, but sometimes projects get a bit too complicated. Look to an expert for help.

Number one – Look to an Expert

An experienced agent handles many transactions in many different ways, there is little an experienced agent hasn’t heard or experienced. If you have something on your mind or something you want to hide, ask it and tell it. Your agent will probably have a better plan or better way to help because they have seen it before. No two transactions are the same, but an experienced agent has the knowledge of previous transactions to help you in yours.

Two – Changing Your Credit

Lenders lend money based on credit scores, income and the ratio it provides. Ratios are key. For sake of easy math let’s use a word problem to explain, if you make $100,000 a year and have expenses of 35,000 you have a debt to income ratio of 35%. If you add on a debt (car purchase) before obtaining a loan you could exceed the maxim amount of debt to income a lender will allow. The moral of the story is, don’t make large purchases on credit prior to obtaining a loan.

Three – Buying a House You Shouldn’t Have

When you hire an expert agent you will most likely go over your wants and needs in a home. By doing so you will narrow down your search and ultimately purchase of a home that matches your needs and desires. Do you need 2 bathrooms or 5? If you have 1 child probably 2 will be fine. If you have a family of 8, you might need a few extra bathrooms. Make sure the home you purchase matches your finances first, your needs second and your emotions last.