These Mistakes Will Cost You When Buying a Home

housing marketThere are no shortage of potential mistakes that can be made when buying a home. In fact, the decisions you make can impact the ultimate sale price by up to 20%.

With that in mind, Consumer Reports recently outlined the potential errors that can be made when buying a home and how they can be avoided. Let’s get started.

The first potential mistake is rushing into a deal. This can be the most costly error of them all. When rushing into a deal, you have a great potential to overpay. Rushing into a deal is often the result of a buyer overestimating their knowledge of the local market, according to agent’s contacted for the story. The proper course of action is to take your time and view lots of different homes to get a true estimate of market value.

The other potential pitfall is underestimating the actual cost of home ownership. It’s not just the monthly mortgage you must account for. You must also be able to handle things like closing costs, additional fees, maintenance costs, etc. In addition to calculating all those costs, it’s also smart to ask the current owner what they pay monthly in utilities and taxes.

Also critical before buying a home is upgrading your credit score. In order to get the most favorable terms possible, you will need a strong credit score. Typically, to get the best terms,  you will need a credit score of at least 740, according to Consumer Reports. Don’t wait to the last minute to get your credit score in order.

One other step that can cost you a bundle is skipping the home inspection. Without a home inspection, you may later find there are big problems with the home that will cost you a boat-load of money. Do not do this. Instead, find a local inspector and be present for inspection. This will save you plenty of headaches and money later on.

These are just a few of the most critical mistakes to avoid when buying a home. There are plenty more. Consumer Reports has a more extensive laundry list of potential errors to avoid, all of which can be accessed here.