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Home Buying Mistakes to Avoid
Buying a home is a major decision that encompasses legal, financial, and (even) emotional considerations. It is often one of the most exciting purchases of one's life but can also be exhausting if you're not informed or prepare yourself in advance. The following are some frequent mistakes that are made by those buying their first homes that should be avoided to ensure a smooth and stress-free experience that won't leave any burdens when it's all said and done.

Do Your Research and Stay Informed

Often times, people get overly excited about buying their first home that they rush right into the process without ever making necessary preparations and research. As is stated in How to Search for Homes, it is critical to first take the necessary steps to identify your goals, narrow down the search criteria, and then begin to start searching for homes. It is important that you don't let your emotions cloud your decision-making and overlook important details when buying a home. This is a common mistake that results in problems down the road. Also, get informed and do some research about what is involved in buying a home. There are thousands of resources at your disposal, most importantly, your real estate agent who can inform you about details of the home buying process.

Put on Your Best Poker Face

When you finally find the home you want, don't get too overexcited. Most likely, you will be filled with emotions and be extremely happy. However, it is important to maintain a cool and calm demeanor and look at your purchase as a business transaction. Showing your emotions to the seller and seller's agent can often times compromise your ability to negotiate for that property, so it is important to put on your best poker face!

Don't Become "House Poor"

Ok, so you've been pre-approved for a mortgage and you're ready to rock n' roll! But hold on a second and think about it before you jump the gun and spend all your money on your dream house. Remember, owning a dream house without being able to buy any furniture or fix up the garden may not be so dreamy. Do not push yourself to your financial limit. If all of your earned income is being used to pay your monthly mortgage payments, you will be in a very difficult and uncomfortable financial position. Moreover, it is dangerous to leave yourself exposed in case something drastic happens and a major expense is required. Make sure you leave yourself some room to breath and avoid becoming house poor!

Shop Around for a Mortgage

Since buying a piece of real estate will probably be the biggest purchase of your life, it is important to take the time and find the best mortgage for you. Don't sign up with the first mortgage broker you meet! There are many mortgage products and options out there with different loan structures, terms, and points. Spend some time and research what will work best for you and who will give you the best deal. Most likely, you will receive plenty of advice and recommendations for mortgage lenders from friends and family. However, you should never feel obligated to work with a lender if they are not providing you the best product that is line with your financial situation. Meet with a few mortgage brokers and banks to compare and determine who will give you the best loan.

Get Pre-Approved for a Loan

Another important step that is sometimes overlooked by first time homebuyers is to get preapproved before starting the home search. A pre-approval is not only important but it's necessary. A pre-approval is rough estimate about how much money a bank will provide you for a mortgage and dictates the price range of homes you will be able to afford. Moreover, when you have selected a home that you want, you will have to make an offer and the pre-approval letter usually solidifies the offer and shows that you're a serious buyer.

Get a Home Inspection

So now that you want to buy your home, you have to make sure you know what you're getting yourself into. Don't forget to get a thorough home inspection! A home inspection is very important because it exposes the condition of the home and reduces any overseen ‘surprises' that may cause problems later on. More importantly, contingencies on the purchase contract will allow you to cancel the contract or make further negotiations if there are any problems identified from the home inspection.