Purchasing a home could be one of the most important financial decisions in your life. Your home could be the largest purchase you ever make. For this reason, it is crucial to avoid mistakes that could cost you money in the future. Your home is going to be among your most important financial assets, so it is imperative to avoid mistakes before making a purchase. Some of the most common homebuying mistakes you could make include:
- Failing to check your creditworthiness beforehand. You need to review your credit history before even considering buying a home. Your credit reports will determine when you qualify for or can receive reasonable interest rates for a mortgage. Fortunately, you can receive your three credit reports once per year from the three credit agencies to help make this determination. Many mortgage lenders use industry-specific FICO scores, which are calculated by using the information contained in your credit reports.
- Failing to perform an inspection. You should have a licensed professional conduct an inspection before deciding to purchase a home. Some homes could contain hidden problems that may cost you thousands to repair in the near future. Water leaks, mold, termites and weather damage could be lurking within the walls of your dream home.
- Failing to account for hidden expenses. You will likely be hit with several expenses after purchasing a home. For instance, homeowners’ associations can charge fees. You should also set aside money to purchase insurance on your home. Furniture, property taxes and utilities bills should also be factored into your budget before making a purchase. It is important to avoid spending more on your home than you can afford so you can pay for these expenses.
- Failing to perform research on the neighborhood. You should research any possible factors in the neighborhood that could affect your home’s value or your personal safety. Does your neighborhood have high crime rates? Do other homes in the area suffer from certain types of problems, such as termites? You should research the neighborhood before making a purchase.
- Failing to consider your home’s resale value. Job loss, being transferred at work or an unexpected illness could require you to sell your home. This is why it is important to have an assessment done on the home’s resale value before making a purchase.
There are dozens of other mistakes you could make while purchasing a home. For this reason, we encourage you to work with a professional while you are shopping for a new house.
The New Jersey real-estate attorneys at Garland & Mason, L.L.C have decades of combined experience handling real-estate disputes and litigation. For future updates on real-estate issues and solutions, continue to follow us on Facebook and Twitter.