Buying a new house can be a confusing process, and that is one of the reasons why so many people bid on the first piece of property that they come across. Unfortunately, purchasing the first home that you find in your price range could result in some major financial issues down the road. Here is a look at four tips that will help you avoid a few of the most common mistakes that first-time buyers make.
Work on Your Credit Score
The most important piece of information that lenders are going to look at is your credit score, and you need to make sure that it is in a good place. Increasing your credit score by just a few points is going to reduce your interest rates and save you thousands. You also need to make sure that there are no derogatory marks on your credit history that could impact your chances of getting a loan.
There are a few different reasons why you should try to get pre-approved for a mortgage loan from a company like Home Mortgage of America or someone similar before bidding on a home. In addition to knowing how much money you have to work with, you can also use your pre-approval as a bargaining chip. The seller will know that you can immediately transfer the money as soon as the paperwork is signed. They might choose you over other bidders simply because they know you are ready to make the transaction.
Skip the Frivolous Upgrades
Lavish upgrades such as a new pool or home automation system might be tempting, but they don’t always add much value to a home. Before bidding on a home, you need to make sure that all of the key systems are working flawlessly. Installing your own home automation system a few months after you move in will be much cheaper than replacing a failing air conditioner or fixing a burst pipe.
Schedule a Thorough Home Inspection
Scheduling an inspection with an experienced contractor is one of the most important steps in this process. These professionals have been trained to find damage that most people overlook. Seemingly minor issues such as a little bit of mold in the cupboards or a small crack in the driveway could end up costing you thousands if you don’t catch them early on.
Working with an experienced real estate agent will limit your risks and help you avoid some of the most common mistakes that buyers make. A local realtor can also help you find hidden gems that haven’t been published in public listings.
About the Author:
Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.
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