Avoiding Common Home Buying Heartbreaks | New American Funding

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Buying a home can be a thrilling experience, but not all those thrills are positive. Sometimes, you just don't get the home of your dreams. There are many reasons for this, but there are also plenty of ways to avoid the heartbreaks that many first-time homebuyers experience. Let New American Funding help you avoid heartbreak as you buy your first home.

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Avoiding Common Home Buying Heartbreaks | New American Funding

  1. 1. State Licensing Information. Home Buying Heartbreaks Buying a new home can be one of the most exciting times in life. The anticipation of finding your dream home and enjoying the new space with family and friends can, however, give way to disappointment if you don’t take the right steps throughout the process. Without proper preparation, several home buying pitfalls can lead to heartbreak. Follow the tips in these pages to avoid those hazards and make your home buying process as smooth as possible.
  2. 2. State Licensing Information. Viewing Bad Matches One of the biggest frustrations many homebuyers experience is time wasted viewing homes that don’t meet their goals. Even in the best case, home shopping requires a lot of time and effort. The last thing you want is to spend afternoons, evenings and weekends driving all over town viewing homes that don’t come close to meeting your expectations. Working with an experienced real estate agent who knows the market well should prevent most of this, especially if you sufficiently communicate your needs. Express your must haves, preferences and deal breakers. Many agents have worksheets to help you gather your thoughts.
  3. 3. State Licensing Information. Reaching Beyond Your Means When it comes to home buying, it’s important to take steps in the proper order. One of the first things you should do is seek pre-approval for a mortgage loan. Pre-approval tells you just how much of a loan you can qualify for, preventing you from falling in love with a house that’s beyond your financial reach. This is also a good way to avoid viewing bad matches. Applying for a pre-approved mortgage is fairly simple, but just like any loan process, it requires certain paperwork. Check out our SlideShare on “5 Things You Need to be Pre- Approved for a Mortgage Loan.”
  4. 4. State Licensing Information. Disagreeable HOA Regulations Many neighborhoods have homeowners associations (HOAs) to regulate, among other things, how home exteriors are maintained and what improvements you can make on the property. The goal is to protect the value of the neighborhood for the benefit of all homeowners. If you don’t read the HOA covenants in advance of buying a home, however, you could be in for a surprise. Some HOAs prohibit swimming pools while others regulate how large additions may be. Many prohibit parking boats or recreational vehicles on the property. Always read the HOA regulations before making an offer.
  5. 5. State Licensing Information. Missing Out on the Offer You found the house you want. Now it’s time to make an offer. This is often a stressful time for many homebuyers. You want the best possible deal, but you don’t want to lose out to a higher bid from someone else. Some industry experts recommend an initial offer 5-10% below the listing price. Your real estate agent should be able to offer guidance based on current market conditions. Being pre-approved for a loan may also give your offer more weight than a slightly higher offer from a non-pre- approved party. It’s a good way to demonstrate you’re a serious shopper. See our “12 Steps to Buying a New Home” SlideShare.
  6. 6. State Licensing Information. Finding Problems Post-Buy Imagine finding out your dream house is actually a nightmare – after you buy it. Things that looked good on the surface are flawed underneath. The only way to protect against this is a professional home inspection. The inspector reviews the house from foundation to chimney and reports on any problem areas. You can then negotiate with the seller to determine whether they will fix the issues or if the sale amount can be lowered accordingly. Just before closing, you will have the opportunity to do a final walkthrough to make sure all agreed upon repairs were made.
  7. 7. State Licensing Information. No Cash for Renovations Lots of homebuyers dream of finding that “great little fixer upper.” Sometimes, however, they find renovations require more cash than they have on hand. If you plan on making even moderate renovations soon after the buy, it’s a good idea to have your contractor review the home with you before making an offer. This way you’ll have a reasonable estimate of the costs involved. Work with your financing company to identify options to include that amount as part of your overall loan package. One option may be an FHA 203(k) home improvement loan which can provide up to $35,000 for improvements.
  8. 8. State Licensing Information. Avoiding Common Home Buying Heartbreaks If you’re in the market to finance a home purchase, contact us today… www.NewAmericanFunding.com
  9. 9. State Licensing Information.

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