It’s Time to Buy
Your home. It’s not just a place to rest your weary feet, but it can also be a great investment. But if you don’t play your cards right, you could be in trouble. So, when it comes to buying a home, there’s the right way to do it – and the wrong way. Here are five mistakes that you may make when buying homes for sale in RI.
Not Getting Pre-approved
The first mistake people make is not getting pre-approved. Are you pre-approved for a home? Do you even know what a pre-approval is? It’s not a different way of saying pre-qualifying either.
Pre-qualifying: A ballpark figure indicating how much you may be allowed to borrow. You can get this number often from a web site or a simple phone call. No fuss, no muss.
Pre-approval is a more formal process that gives you a more concrete number of how much you could borrow. Your mortgage lender will review your finances, employment statements, pay stubs, debts, credit statements, and figure out your number. You will also get a pre-approval document. It states that you have, in fact, been pre-approved, among other pieces of information. Show this to sellers to prove that you are serious.
What happens if you are not pre-approved? For starters, you have no idea if you a mortgage lender is willing to lend you how much you need – if at all. Sellers are less likely to accept your offer. If they do, you probably will have less negotiating power. So get pre-approved before going house shopping for homes for sale in RI!
Being Your Own Real Estate Agent
Buying homes for sale in RI costs money. So it makes sense to cut out any optional expenses, right? Maybe. Although you can save on commissions, being your own real estate agent can cost you in the long run. Sure, a real estate agent shows you homes for sale in RI. Sounds easy enough! But there is so much more. For example, they:
Don’t underestimate the power of using a real estate agent.
“We Don’t Need No Budget!”
If money is no object, you could buy the biggest, most beautiful house there is! The problem lies with our emotions, being swept away by what a home represents. Even if you do go over your budget to buy your dream house, you could regret it once those bills start to arrive. To avoid this, stay within your budget. That begins with your pre-approval – the maximum you may be allowed to borrow. Never go over this amount. And it’s better to stay far below this number. That way, you can afford the mortgage – and the property taxes, closing costs, and moving costs. Don’t forget about the operating costs of that house too. The bigger and more expensive the home, the higher those expenses are too.
Plan your budget based on your financial constraints, not your emotions.
Home Inspection? It Looks Fine!
From the down payment to the mortgage payment to the property taxes, buying a home costs money. But skimping on the home inspection is a great way to buy the wrong home for you.
It’s understandable – costs add up, and quickly too. Even if a home looks great on the surface, you don’t know what lurks beneath. Those issues could make the difference between buying the house and waiting for a different one. Having a professional make their assessment about the health of homes for sale in RI is worth its weight in gold. For example, they can spot water damage, foundation cracks, insulation issues, drainage problems, and much more. The cost of repairs can cost you thousands! Can you afford them? Can you afford not to get a home inspection?
Not Being Flexible
Buying a home is not catalog shopping. You sometimes have to take what is out there, especially for an older home. If you are looking for a picture-perfect place, your search may never end. What does being flexible mean? It could mean adjusting on price, location, closing date – or buying a finished basement with the dreaded wood paneling. Having flexibility equals greater opportunity that is yours for the taking!
Get Shamrock on the Case
There are many ways to find the right home, and many ways you can bungle up that sale. After talking with the professionals at Shamrock Financial, you know you are talking with the right mortgage lender. Ask us about our great rates, fantastic terms, and make the right decision – with Shamrock Financial.