Ten Mistakes Southern Utah Home Buyers Make

Buying a home in St. George (or anywhere) requires some homework, but there’s no time to prepare like the present. Buying a home is more than just purchasing a new place to live, it’s one of the best investments you will ever make. In fact, it’s often the largest investment you’ll make. However, many first time home buyers make mistakes when purchasing their homes. Here are some of the most frequently committed errors and ways to avoid making them.

Mistake #1:    Not Buying a Home

It may sound odd, but many people never buy a home at all, even though it is a great investment and a better use of money. While it’s fine to take all the time you need looking at homes and discussing financing, if you find a great house, buy it. Don’t be afraid of commitment because if you are, you may lose your dream house.

Many first-time home buyers spend days looking at homes before sitting down with their mortgage officer and learning that they can’t afford a single house they looked at. If you don’t talk with a lender first and get pre-approved, you will often end up wasting time looking at houses that are too expensive. Once you are pre-approved, you will be both more knowledgeable about the process and know what type of home you can buy. It’s perfectly fine to shop around for mortgages, too. Get a quote or two from several different companies, and ask as many questions of the loan officers as you would like. Just like finding a good agent, it’s very important to find a good loan officer that you are comfortable with.

Mistake #3:    Not Inspecting the Property

When in the grocery store, you inspect fruits for mold and soft spots. You should do the same for your new home. If you don’t have the house professionally inspected for problems, including structural issues, safety problems, and more, then you run the risk of buying a house with a major problem. Inspections let you make a well-informed purchase, and often, they will shine a light on critical problems that you would have had to deal with after purchasing the home.

Mistake #4:    Getting Stuck With Your House.

You may believe otherwise, but statistics show that most first time home buyers will sell their house within a few years of purchasing it. Even if you plan on living there for decades, you should still think about how likely your home is to sell. Get opinions from friends, family, and your real-estate agent. Ask how long the house has been on the market. If a house has been up for grabs for a long period and no one has bought it, there may be a reason.

Mistake #5:    Forgetting to Factor in Growth

A small home may seem perfect at the time, but what about in the future? Be sure to consider things like having children or setting up a home office when you are shopping for homes. Buying and selling a house is a long, often expensive process, and you don’t want to find yourself outgrowing your new home.

Mistake #6:    Going With the Lowest Rate

While it is important to secure a loan with a low interest rate, remember that the rate isn’t the only factor. Take into count the APR, the loan fees, and the origination and discount points. All of these factor into the total cost. Also, it’s important to make certain that your loan officer separates the discount points (points that reduce the interest rate) and the origination points (costs for the lender to originate the loan)

The cost, however, should not be the only factor in deciding on a mortgage company. You should also ask around and find out if the company has a good reputation and can get you the loan they say they can. The last thing you want is to be days from closing only to learn that your lender is increasing the rate or adding in new fees.

Your lender should sit down with you and discuss many different financial options for your home. While the standard 30-year loan is often the best, there are others which may fit your financial situation better.

Mistake #7:    Purchasing a House That has an Incurable Defect

Another thing you have to watch out for when buying real estate is that no house will be one hundred percent perfect. Almost every home will have a defect of some sort, but few will have incurable defects. A defect is generally anything that detracts from the home, such as inadequate parking or being located near a loud intersection. Generally, the buyer can’t change this type of defect, and you will inherit this problem when you buy the home. While you may not be able to buy a home without a defect of some sort, you should definitely consider the impact the defects will have on your life.

Mistake #8:    Purchasing the Priciest House Around

You should also be aware of the issue of buying the most expensive house in the neighborhood. If you buy the most expensive house on a block, the other homes in the neighborhood will actually cause your home’s value to decrease. Remember, an expensive home is generally surrounded by other expensive homes.

Mistake #9:    Selecting the Wrong Agent

Real estate agents are like any other salesperson: some of them are going to innately understand your needs, and some of them aren’t. You want to find an agent you are comfortable with and one who is knowledgeable about the type of property you want to purchase. Your agent shouldn’t hesitate to spend several hours with you as you view houses and discuss the process of buying a home, and he or she should definitely not hesitate to answer all of your questions. The agent is the one who will ultimately take your offer to the seller, so it’s important that he or she know your needs and financial situation.

Mistake #10:    Not Planning for the Worst

While it would be nice to think everything regarding your closing will go off like clockwork, you should plan for the worst. Sometimes, a closing will be delayed by several days or even an week. If you terminate your lease or plan days off to move too early in advance, you may find yourself in a time crunch. If this happens and if your landlord is not willing to work with you, you may find yourself sleeping on a friend’s couch for a week.

To avoid this, set the termination date for your current housing about a week or ten days after the closing. This will not only ensure that you have a place to live if there are delays but also give you plenty of time to move. A little pre-planning can help prevent stress from delayed closing.