There are some common mistakes that Pittsburgh homebuyers make when purchasing a home. This is one of the greatest reasons buyers should hire their own real estate agent to work on their behalf. The buyer specialists on our team can help you avoid the pitfalls of homebuying.
The homebuying process begins before you are ready to step inside a home for sale. Saving money and monitoring your credit score will set you up for a successful home buying experience.
Buyers can hire an agent to work on their behalf. Working with a buyer’s agent provides the buyer with an advocate to represent their interests in the real estate process.
Here are ten common mistakes:
- Ignoring their credit rating.
Your credit rating can affect your ability to obtain a mortgage. A periodic review of your credit report should be done. Clear up any discrepancies as they arise. A credit repair company can help you increase your credit score if needed.
- Skipping the pre-qualification step.
Without a pre-qualification letter from a reputable lender, sellers most likely will not consider your offer. If you are competing against multiple offers, you can knock yourself out of the competition.
- Insufficient Savings Accounts.
You may be obtaining a low down payment or no down payment loan, but you will still be responsible for some costs to purchase the home. You will need to pay for inspections, mortgage closing costs, and escrows required by your lender.
- Making a large purchase before closing.
There have been homebuyers who were not able to obtain their loan because they purchased new furniture or a car before closing. The lender usually does a last minute credit check to ensure there were no significant changes in your credit score.
- Misunderstanding closing costs.
Closing costs cover various fees that are required to purchase a home. These fees can be lender fees, attorney fees, municipal and state fees, homeowner association fees, and inspection fees. It is recommended that you review these fees with your lender prior to submitting an offer.
- Overlooking repair items.
When you find the home you want to purchase, it can be an emotional time. Your judgment may be clouded by the thoughts of finding your dream home. Don’t overlook repair items that arise assuming they can be handled when you move in. Sometimes the problem may be more extensive than you thought. It is advisable to have a professional evaluate the situation before agreeing to be responsible for the repair.
- Buying a house you can’t afford.
Just because a lender approves you for a certain amount of mortgage, doesn’t necessarily mean you should spend that much. Keep in mind your lifestyle and the things you like to do. Will your budget allow you to continue living the life you enjoy?
- Ignoring hidden costs of homeownership.
There are additional expenses outside your mortgage that you will need to cover. The cost of utilities, furnishing, homeowner associations, maintenance, and an emergency fund for the unexpected are all things you should plan into your budget.
- Not researching the neighborhood.
Do your research when selecting a neighborhood. Are there any development plans for the area? What is the crime rate? Visit the area at different times of the day to get a feel for what goes on throughout the day.
- Believing that working with the Listing agent will save you money.
The listing agent’s fiduciary responsibility is to the seller. Working with the seller’s agent will not provide you with an advocate who can work in your best interest.
The home buying process has been competitive in our area. You need a professional who studies the market and latest trends. A buyer’s agent can help you avoid these mistakes.