We work with home buyers every day and wanted to share what we found to be the top mistakes that new home purchasers make.
#1 Not getting an inspection.
You found your dream home and it is perfect so you decide to save money by not getting an inspection. This is extraordinarily risky because even with a new home, there can be problems. An inspector will be able to identify problems that you would not even know existed. After the inspection you will be able to work with the seller to either fix the problems or provide a financial discount before the closing. Once you have closed on the home there is no going back!
#2 Forgetting about home insurance.
Your lender advises that they need proof of insurance on your home one week before you close. You then have to scramble to get coverage which often results in going with the first quote you receive. This often results in inadequate coverage and missed savings! Work with a licensed independent agent early so they can also look at your auto insurance too. Bundling your auto and home insurance with one company can save you hundreds of dollars.
#3 Not using a real estate professional.
A good real estate agent works on your behalf. They know the area and can help you negotiate an offer, help you with counter offers and make sure you do not overpay! They also help you re-negotiate after an inspection to either make sure items get fixed or that you receive adequate compensation.
#4 Not shopping your mortgage rate.
You have been with your bank for a long time so you go to them for your mortgage. This could end up costing you money because different lenders offer different rates. If you go to a mortgage broker, they can easily shop your mortgage with many companies to find the best rate.
#5 Not insuring your home for replacement value.
The cost to rebuild a home is very different than how much you paid for it. A good agent will use a tool to accurately calculate how much it would cost to rebuild your home and share it with you to review. Understand how your agent came up with the value for your home and make sure the details are accurate. Failure to do so could leave you under-insured!