If you are currently looking towards buying your first home, make sure you are aware of these critical mistakes that can end up costing you thousands of dollars. If you are aware of these simple mistakes to avoid before finalizing your purchase, you can rest assured that you are getting the best possible deal on your new home!
- Not understanding the importance of your credit score:
If you are someone who has a stellar credit score the interest rate you pay on your mortgage will no doubt be less than that of someone with a lower credit score. Knowing that having a solid credit score can in fact save you thousands on your mortgage and fees, make sure you have a suitable credit score when you plan on purchasing your home so that you can avoid paying a higher interest rate on your mortgage.
- Buying a home when you are not the most financially stable:
Early on in our adult lives there is no doubt that renting is often the more affordable approach towards housing. However, knowing that we are paying for something we do not in-fact own, can be somewhat off putting. Realizing when it is an appropriate time to buy a house versus renting one is a crucial step in making the right decision. Do not commit to purchasing a house too early when you might not have all of your other expenses in order.
- Trusting the price you see:
Often, the price that is listed on a house is not an accurate and true indicator of its real market value. Consulting with a real estate agent before you make your purchase can potentially save you thousands by making sure you are not buying the house at a premium and instead buying it for what it is truly worth.
- Not going through with home inspections:
The excitement of finally obtaining the house of your dreams may make you hasty when it comes to making your decision and finally sealing the deal. Nevertheless, remember to always go through with a final inspection with a professional before you finalize the transaction. This will make sure you are not walking into a sinkhole of repairs that will end up costing you thousands of dollars later on.
Image from Mark Moz via Flickr.