5 Biggest Mistakes People Make When Purchasing a New Home

5 Biggest Mistakes People Make When Purchasing a New Home
By [http://ezinearticles.com/?expert=Scott_Li]Scott Li

Buying a home will always be an expensive process, regardless of its size, location or the condition it is in. As a result, many people try to cut corners wherever possible to save money, which often ends up producing disastrous consequences. Below are some of the most common mistakes that many people make when purchasing a home for the first time.

1. Forgetting About Hidden Costs

First time home buyers often think that the purchase price of the house itself is all they will have to budget for. There are numerous other costs that are involved with a house purchase though, and these can include, but certainly not be limited to appraisal fees, property inspection costs, notary fees, home owners insurance, relocation costs and much more. Each of these costs must be taken into consideration, as they will quickly add up and derail even the most carefully constructed buyer's budget.

2. Skipping Property Inspections

Although property inspections may not always be required to process the sale of a home, they are strongly recommended. Regardless of the age of a property, it can be home to a plethora of unseen issues such as electrical or wiring faults, plumbing problems, dampness, mold or even more serious structural issues - all of which are often not seen when the house is initially viewed. Qualified and experienced property inspectors will be able to detect any serious issues, which could enable would-be buyers to negotiate on the property's selling price.

3. Opting for the Largest Possible Mortgage

A common mistake made by first time home buyers is opting for the largest mortgage possible. Although it may be possible for the buyers to cover the cost of the mortgage itself, serious damage could be done to even the most well-planned budget if emergency repairs to hot water systems, roofing or electrical wiring need to be done. Instead, it is recommended to opt for around 25% less than the highest mortgage that a home buyer qualifies for.

4. Not Researching the Neighborhood

It is strongly recommended that potential home buyers do thorough research on a neighborhood beforehand. The easiest way to do this is to visit the property at various times of the day and week to get an overall feel of what the neighbors are like, whether there are schools, playgrounds or other recreational facilities within a reasonable distance from the house. Other important factors to research include the quality of medical facilities in the area and current crime level statistics.

5. Falling in Love

Too many first time buyers openly admit that they have fallen in love with a particular property far too early in the negotiation process. This can be detrimental in that it could result in the seller not being willing to negotiate on the property's asking price. It may also prevent buyers from seeing the true condition of a property. It is essential for buyers to be objective when looking at any property.

If the above mentioned factors are kept in mind at all times, buying a home need not be an overwhelming process - even although it will more than likely be the largest purchase that many people will ever make.

RealtyTopia is a unique home buying and selling team. Servicing the greater Philadelphia area they offers homes for sale and the ability to sell. Please visit http://www.realtytopia.com or call 888-213-9358 today!

Article Source: [http://EzineArticles.com/?5-Biggest-Mistakes-People-Make-When-Purchasing-a-New-Home&id=8955482] 5 Biggest Mistakes People Make When Purchasing a New Home