Mistake #1: Assuming Home Ownership Is Unattainable
Many aspiring homeowners mistakenly believe that purchasing their dream home is out of reach financially. However, home ownership is often more affordable than people realize. Buying real estate is one of the soundest investments you can make. For most homeowners, the equity in their property ends up funding a sizable portion of their retirement. Tax laws also favor home ownership.
While housing prices fluctuate over time, real estate values have consistently increased in the long run. Each mortgage payment you make reduces the amount you owe while your home’s value typically rises. This increasing equity is why you may be in a better position to buy than you think.
Even with little money for a down payment or past credit issues, home ownership is still possible. Success comes down to employing the right strategies and working with professionals who can guide you through the process.
Mistake #2: Not Hiring a Buyer’s Agent
Purchasing a home is an intricate and stressful endeavor, often the largest financial investment you will ever make. Real estate transactions have become increasingly complex. New technologies, laws, procedures, and competition from other buyers demand that buyer’s agents demonstrate a high degree of skill and professionalism. Poor decisions can cost you thousands.
Work with a buyer’s agent who understands the local real estate market and has a fiduciary duty to represent your interests. A buyer’s agent can help you find an ideal home, mortgage lender, and home inspector.
Attempting to buy a home without professional representation is ill-advised.
Mistake #3: Choosing a Subpar Home Inspection
When buying a home, the cost of a quality professional inspection is minor relative to the property’s value. Paying a certified inspector a small amount extra is negligible for the peace of mind and protection it provides.
As an aspiring homeowner, you have been crunching numbers, negotiating offers, calculating closing costs, and shopping mortgages to get the best deal. Don’t stop now. Don’t allow anyone to pressure you into skimping on a professional inspection. Your real estate agent, a cursory inspector, or anyone else has no incentive to prevent you from making a mistake that could cost you dearly. Invest in a comprehensive inspection by a certified professional.