Most people who are looking at buying a home have thought about saving for a down payment and obtaining a mortgage for a property. Once they have enough money and decent credit they think the process of buying a home is going to run smoothly. However, this is not always the case.
If you considering buying a home in the near future, be prepared for these four common problems potential homeowners face.
Depending on the area that buyers are looking for a house in, they may have very few houses to choose from. The housing market in busy cities are very competitive because there are fewer houses to sell. When a great house is for sale, many buyers are placing strong bids as soon as they see the home. This can cause a bidding war that forces a buyer to pay more than the house is worth.
In a tough market, it is important to remember to make an offer quickly if the house is a good fit. Taking a few days to consider the pros and cons of a house can mean missing out on a great house. Homebuyers want to be ready to act fast but also must be sure that are acting smart. It does not do you any good to win a house that you really do not want.
Many people incorrectly think that once an offer is accepted they will be ready to move into the house within days. This is not the case. There is a long process to close on a property. In fact, most houses take just under two months to complete closing once an offer is accepted.
There are many parts of closing that can take time. Inspections and appraisals take up a lot of time. They must be scheduled with a third party and sometimes they are not able to view the house right away. Once they have viewed the house they still have to put together their report. While it can be annoying to wait for an inspection it is a needed step in buying a house.
A good inspection will save a buyer from purchasing a house that will end up being a money pit. The inspector will find all of the problems a house has, so the buyer can make an educated decision on whether to pursue the property or not. An inspection report can seem very overwhelming to a buyer.
The long list of problems with a house can make a buyer have second thoughts about buying. While this is a good thing in some cases, it does not always mean they should withdraw their offer. Some problems are easy to fix and many are not safety issues. There are problems that can be taken care of after moving in and living in the house.
Cost of Closing
The cost of closing sometimes come as a shock to a homeowner. They do not realize that after their initial expenses and down payment they will have to pay even more to finish the process. Many people see up to five percent of the home’s purchase price for closing costs. Save some extra cash back to cover this unexpected expense.
Buying a home is an exciting experience. Unfortunately, many people dive in head first without doing proper research. When an unprepared buyer starts looking at a house they may be shocked to see how few homes are available and how quickly they sell. Once they find a house they may be unprepared for how long it takes to close, what comes up on an inspection, and how much money it actually costs to close. Keep in mind that the more prepared you are from the start, the better your chances of being successful.