Not Getting Your Financing In Place The first step in the home buying process is to determine your financing options. If you do not know what a lender will qualify you for, you will not know what homes you can afford. You might be looking at homes below or above your qualifications. What's more, when you find a home you like, you will not be able to give the seller peace of mind that you have the ability to finance the purchase. Sellers want to be assured that the buyer has the ability to close the transaction. So, before you begin looking at homes, get pre-approved for a loan. You will know exactly what you can afford, and when you find the right home, you will be able to provide the seller with assurance that you will be able to complete the transaction.

Looking At Homes You Can't Afford Know what that crashing sound is? That's the sound of your heart breaking after you've looked at homes above your price range. Nothing else is going to seem quite good enough. It's a fast track to misery.

Failing to Get Professional Inspections You are about to make a significant investment. Not getting a home inspected by licensed qualified experts may be a costly mistake. It may sound appealing to save a few dollars and have your contractor friend or relative perform an inspection. However, they may not be the best qualified to give you a thorough and objective evaluation. Even if you are purchasing new construction, be sure to hire licensed qualified experts to inspect the property from top to bottom. It is not uncommon to find an electrical outlet not hooked up properly, etc. Inspections are wonderful investments and will help give you peace of mind that the home you are purchasing is in sound condition, and that the plumbing, electrical, central air, furnace, kitchen appliances, etc., are working.

Buying In A Neighborhood You Know Nothing About One of the biggest misconceptions buyers have is that the neighborhood doesn't matter. Guess what? You don't just live in a house. You live in, and become part of, the neighborhood. You'll have to go through that neighborhood every day to get to and from your home. Before you buy, spend some time to make sure it's a place you feel safe and comfortable, that can provide you the services you need. Driving 5 miles for a gallon of milk might be the last thing on your mind after a long day at the office and 2 hours of commuting.

Operating On The "I Have to See Lots of Homes Before I Buy" Theory Often buyers think that they must see lots of houses before they make a final purchase decision. That is not necessarily the case, and can result in losing out on the perfect home. While most buyers see a fair sampling of what's available in a neighborhood and price range, when they see a that home feels perfect, and get that 'this is it' feeling, it probably mean that it's the right choice. If it feels right and meets your needs, desires and expectations, make an offer!

Buying A Property That's Difficult To Resell Although you don't mind that the house overlooks a former municipal garbage dump, others will. When you can't sell your home in 5, 10, or even 20 years from now, or when you realize your home hasn't had the same kind of appreciation as homes around the corner, you may curse that dump. Before you buy, think about how hard this house will be to sell. It could be the smartest move you make. Remember the three most important factors in real estate are location, location, and location!

Over Buying Today lenders will allow you to spend up to 40 percent (or more) of your gross monthly income on a home. After tax, that can feel like 55 percent or more. Should you be spending that much to buy a home? Perhaps. If you're in line for a huge raise, or your spouse will be going back to work next year, you might be able to swing it. But putting that much of your monthly income toward mortgage, insurance and taxes (and don't forget about maintenance and upkeep) may feel like a burden. If that's the case, you should listen to your gut and not spend more than you feel you can comfortably afford, you end up with bags under your eyes from alot of sleepless nights.

Being Indecisive In a hot market, when homes are selling in the blink of an eye, indecisiveness could cause you to lose a few homes to those who actually get off the fence and make offers. However, you should take all the time you need, even if it means you need to start all over again. The real issue is making the commitment. Can you make a financial and emotional commitment as large as buying a home requires? If you've missed out on two or three homes and still feel unsure about what you're doing, consider pulling back out of the market and thinking about what's holding you back.

Choosing The Wrong Mortgage It sometimes feels like you have too many mortgage options. If you go shopping for a loan on the Internet, it may seem like there are thousands of lenders from which to choose. Start by knowing how long you plan to stay, and then look at interest rates. Right now, fixed-rate loans are the more popular choice simply because they're so low. If you're planning to keep your property for 3, 5, or 7 years, consider a 3, 5, or 7-year adjustable rate mortgage (ARM), or even a balloon of the specific length you need. Choosing a mortgage that suits your needs is one way to save yourself thousands of dollars.

Being Inflexible When Negotiating a Purchase Price When you find the home of your dreams, and plan to keep the home for several years, don't let negotiations fail because you and the seller are a few thousand dollars apart. When purchasing a home, the most important cost consideration is the financing. A few thousand dollars between you and the seller is insignificant when you take into account the total financing costs and appreciation over the length of time you plan to own the home. If you can afford to pay the extra few thousand dollars to close the deal, and you know this is the right home for you, let go of the 'number' you had in mind and move forward with the purchase. If you don?t, it may be a long time before you find another 'perfect' home and, by that time, the potential changes in home prices and financing options may make the concession of a few thousand dollars look like a real bargain.

Choosing The Wrong Agent Don't make the mistake of believing 'all agents are alike'. And don't choose an agent because he/she is a good friend, has sent you a Christmas card every year since you moved in, or was at an open house. None of that holds water. Certainly, you can invite these agents to be among the three or four agents you interview. But that's as far as it goes. You want to select the best agent, one who: communicates well with you, listens to and understand your needs, is experienced and knowledgeable of the local market conditions, and has a proven track record. Most importantly, select an agent based on comments from his/her past clients. Insist on getting references and call them! Ask past clients "How happy were you with this agent?" and "Would you hire this agent again?"