Here are common home buying mistakes: 

1. Not setting a budget. There is no more important thing to do when preparing to buy a home than to sit down and figure out a budget. Many additional expenses are involved in purchasing and owning a home compared to a situation where you rented. Make sure you speak with a lender to determine all of the costs and fees associated with whatever loan you are interested in. Also consult a Realtor® or other homeowners you know for information on common costs associated with owning a home. There is a BIG difference between what you can borrow from a lender and what you can actually afford from month to month. Make sure you don’t compromise your budget to get your dream home. 

2. Not doing a home inspection. Do not buy a home without a home inspection. Period. While hiring a home inspector is not a guarantee against problems when you buy the home, inspectors will give you an accurate account, based on their knowledge and experience, of the issues you may need to address prior to and after closing. If buying a home is your greatest investment, why not spend a few hundred bucks to ensure that the roof isn’t falling apart and there aren’t termites infesting and devouring your home? A typical home inspection in Rolla or St. James will run between $200 and $250. A termite inspection in this area will usually cost between $50 and $100. That seems like a very small price to pay for some peace of mind. 

3. Forgetting about resale value. When people are looking to buy a home, the farthest thing from their mind is selling the house. In fact, many people put on blinders, thinking, “We are going to be in this house forever”. The reality is that most people are not going to be in their home for longer than 7 years. MARKER For many people it will be much shorter than that. Certainly there are exceptions to this and typically the closer you get to retirement, the longer the time you stay settled in a home, but on average 5-7 years is a good ballpark. Keep this in mind, because 5 years is not so far away and you don’t want to be tied down to a home that is unique and tough to unload because you didn’t consider that in the beginning. 

4. Searching for a home without speaking to a lender. Getting a loan is not like it used to be. There are so many elements involved in the qualification process that it only makes sense to do this before you ever set foot in a Realtor’s office. Knowing what you can afford and what you actually qualify for are two very different things as stated in item 1. It works the opposite here though because people think they can buy a $150,000 home but the lender is only willing to lend you $125,000. That difference in price is a dramatic difference between features within a home in this area. It would be terrible to be out shopping for $150,000 home and fall in love with one only to find that you can’t get the money for it. Every other home you look at will never live up to the first.  

5. Being uninformed. You have heard the terms “Ignorance of the law is no excuse” and “buyer beware”. Those certainly apply to real estate as well. With all of the information that is one touch of a button away, there is no reason why you can’t go into the home buying process completely prepared. Spend some time looking at what is available in your area online. If you already live in the area, drive through a few neighborhoods to familiarize yourself with them. You can find information on anything you desire, it just takes a little time. Remember that “knowledge is power”. Mistakes to avoid when buying a home are much easier to overcome when you know what you are well prepared. 

Costly home buying mistakes can be very easily avoided. Don’t be intimidated by the commitment of buying a home, but at the same time avoid getting swept away emotionally in the process as well. Remembering these 5 tips will make buying a home a much easier process.