If you are planning on buying an Albuquerque home there are some simple pitfalls that you should avoid. Here are the five top mistakes buyers make.
Mistake No. 1 - The first mistake is not knowing how much mortgage you can afford before you make an offer. The easiest way to avoid this mistake is to get pre-approved for a mortgage by a lender so you know in advance exactly how much you can afford. Most pre-approvals are free and it will give you a basis to make a more informed purchasing decision when you find the house you like.
Mistake No. 2 - The second mistake is not realizing in advance who the real estate agent represents. Most people think that the agent you are working with is working for them. But unless they are working as your buyer representative, they represent the seller. There are different types of agency relationships you can have with a real estate agent, so make sure that you are clear on your options.
Mistake No. 3 - The third mistake is not realizing that the wrong mortgage can cost thousands of dollars in needless interest and taxes. Check with your accountant before you make your final decision on which mortgage you are going to choose. Your CPA will be able to tell you what the long term effects will be on your income, your taxes and the equity you build in your home over time.
Most people aren't aware that with a standard 30 year mortgage you will be paying two and a half times the amount of the mortgage in payments. With some planning in advance and a simple strategy you can cut the amount of interest you pay dramatically and own your home sooner.
Mistake No. 4 - The fourth mistake is not discovering hidden defects before you buy your home. One of the most expensive mistakes is also one of the easiest to avoid, by having a professional home inspection. Don't get stuck with a money pit. The cost of a professional home inspection is usually a few hundred dollars, but the peace of mind it can give you and the expense you can avoid needlessly is worth thousands of dollars.
Mistake No. 5 - The fifth major mistake is not knowing how much your credit score can affect your ability to buy or refinance a home. Before you buy a home, many of the clouds on your credit history can be cleared up or even eliminated. Your mortgage professional can help you review and prepare your credit file in advance.
