Avoid These Common Real Estate Mistakes

Wednesday, October 19, 2016 | 7:32 pm

If you’re a property virgin about to take the plunge, here are some common mistakes to avoid and helpful tips that could mean the difference between financial security and debt.

1. Not checking your credit report and score -before you even think of setting foot in an open house, make sure you get a copy of your credit report. The cleaner your credit report and the higher your credit score, the more likely you are to be preapproved for a mortgage at a low interest rate.

2. Not creating a long-term budget – home buyers should create a budget before even beginning their home search to determine just how much house they can really afford. A good rule of thumb is to devote no more than a third of your monthly household income to housing costs, which include mortgage principal, interest, taxes, and insurance.

3. Not researching your neighborhood – you may be living in your dream home, but your neighborhood’s a nightmare. Or you may have children or are planning to have children in the near future, but you didn’t consider the quality of the school districts or parks in the vicinity. You should ask yourself a number of questions during your home search, such as “Are there good schools nearby?” and “Do I feel safe coming home at night?”

4. Not keeping your feelings in check before hiring a home inspector – you’ve already chosen the perfect paint color to match your living room set. But hold on: Before you start picking out accent pillows for your sofa, you need to bring in a home inspector to check the safety of your potential new home. Inspectors will evaluate the structure, construction, and mechanical systems of the home and will give you the approximate price of repairs that may be needed.

5. Forgetting about the hidden costs – You factored in the purchase price of the home but didn’t consider the cost of taxes, insurance, utilities, and fees but there are several hidden costs that first-time home buyers neglect to prepare for. They can be anything from the closing costs to appraisal fees, escrow fees, homeowner’s insurance fees, property taxes, and even moving costs. Another factor is the cost of repairs and maintenance – don’t forget about those.

Call Luka Mihovilovic directly at (714) 603-1972 or visit him in Keller Williams Realty Pasadena 251 South Lake Avenue, Suite 150. Or visit him online at luka.kwrealty.com/about/.

 

 

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