Buying a home can be an exciting yet nerve-wracking experience. It’s a major purchase and investment, and there are plenty of ways to trip up.
Because of the unfamiliarity with the current market trends and conditions, many home buyers make easily avoidable mistakes in the home buying process. But that’s not something you should worry about — we’ve got your primer right here.
Not Hiring a Real Estate Agent
Going through the entire home buying process alone can become confusing and overwhelming. A professional, qualified real estate agent can narrow down the choices for you, become your negotiator, and make the process easier for you. Some states require an attorney to handle the transaction, but attorneys can’t help you find a home; they can only help you draft an offer, and act as a closing agent.
Therefore, it is important to have your own real estate agent, whose interests are aligned to you, and who helps you make more informed choices.
Not Keeping Up With The Closing Timeline
Your purchase contract not only lays out the terms of the transaction but it also functions as the timeline that outlines exactly what needs to happen — and when — so that the transaction keeps moving forward. There is a specific time period allocated to complete various aspects of the transaction — from pre-purchase inspection to securing the loan.
As a home buyer, you must keep up with these deadlines as the failure to do so would mean a breach of contract. In such a situation, the consequences can be dangerous and invalidate the purchase agreement.
Not Following Up
When it comes to meeting deadlines, it’s crucial to understand that you are not the only one following them. From your real estate agent to your home inspector and your loan officer, everybody is responsible for doing their part. Having said that, sometimes, even the most crucial deadlines can be missed, which is why you must follow up.
Don’t feel afraid to do so. For example, if you have a total of 15 days to conduct a property inspection, you need to get on the inspector’s schedule. They need to perform the evaluation and generate the report within the set time period so that you can read the report and discuss the repairs with the seller.
In case you notice that by day 14, you don’t have the report in your hand, don’t hesitate; follow up with the inspector to receive an update. The same is true for other agents you are working with.
Of course, you will want to go polite and courteous in the beginning, but it is also essential to make sure that you close the deal on time.
Spending Huge Amount Of Money During The Escrow Period
Now, this is very important. Please read attentively.
You must refrain from making any big financial decisions during the escrow period. Such a mistake could alter your credit report and make things difficult for you. Getting pre-approved for a mortgage doesn’t necessarily mean it will be funded. Once the lender receives your application, the bank vets your finances to make sure you are capable of repaying the lender.
This means that doing things that negatively impact your credit score should be avoided until the close of escrow. In fact, you must make your finances look as healthy as possible until after underwriting is complete.
During the home buying process, all financial decisions must be well thought; well, it is always better to be safe than sorry.
In The End
Nobody wants to sabotage their home purchase. Although some of these mistakes may seem innocent, but once committed, they can obstruct the process and make things difficult for you.
While you might feel relieved as soon as the seller agrees to the offer you made, but the home-buying process is not over until it’s over. It is essential to follow the steps diligently to ensure your closing is timely, stress-free, and successful.
Being educated about the home-buying process can help you save money along the way and avoid some of these mistakes. To further ensure that the transaction goes smoothly, you must seek help from the professionals. This can help alleviate the stress along the way.