Top Home-Buying Mistakes By LendingTree Editorial Staff At Isnare.com Ezine Articles

Buying a house is the largest investment most people ever make. Yet, all too often it’s a decision made in haste without adequate preparation. Use our list of common house-buying mistakes to avoid costly regrets.

Buying at first sight.
You may be in love with the place, but does it fit your family’s needs and budget? Make a list of your needs and wants and make sure the house fits your requirements. Check out the neighborhood and the community before you buy by visiting at different times of the day and week to learn about noise and traffic patterns. Even if you don’t have kids, check out the local schools to make sure your resale value will be good.

Not getting pre-qualified and pre-approved for a mortgage.
Being pre-qualified gives you a general idea of how much you can afford to borrow. Being pre-approved means a lender has verified your information and credit rating and agreed to provide you with a specific amount of money. You are in a better position to go house hunting knowing exactly how much you can afford and that you have financing.

Overbuying
You may qualify to borrow more, but can you afford to? As a general rule, your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Be sure to budget enough to cover closing costs (often two to five percent of the home's purchase price), plus moving, redecorating and maintenance. Allow for increases in ongoing expenses such as utilities and taxes.

Relying on oral agreements.
Get it right and get it in writing. Written agreements almost always trump oral ones when it comes to contracts. If the offer says the lawnmower is negotiable, but the agent says it’s included, get it in writing.

Forgetting or betting on resale.
Avoid buying a home that costs 50 percent more than neighboring homes and think before buying the most expensive home on the block. Your neighbors’ lower home values will weaken yours. Remember, markets change. If you buy intending to flip your investment and the market falls and you have to sell, your selling price may not be enough to even cover your mortgage.

For more home buying mistakes, visit http://www.lendingtree.com/cec/yourhome/firsthomebuyers/home-buying-mistakes.asp

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