Real estate buying is a tricky and sometimes dirty world, I don’t mean everyone is like this, but there are just a few culprits and pot holes that you might run and fall into. So to avoid the trouble and falling into a trap, here are a few tips you need to know for to avoid FSBO homes buying mistakes:
1. Deciding to purchase a home without knowing your finances- This is where a lot of people get into a great deal of trouble. When you are not aware of your finances, the amount of money you can earn as well as what other financial responsibilities you have, then there is a great chance that you will get into a great deal of trouble. Not knowing your finances will often lead you to spending more on your home, this is because you are just basing your knowledge on your income and not on the overall inflow and outflow of money. So to avoid this dilemma, be sure to consult an accountant or if you can do it on your own, check every detail of your financial responsibilities and be realistic with the amount you can afford.
2. Home hunting without pre-approved for a mortgage loan- The trouble you have to go through when it comes to applying for a loan is not new to most of you, there are a lot of those who purchase homes in the different FSBO listings even though their mortgage application is still pending. And when unfortunate events like disapproval comes their way, they will have a hard time to stand up from the burden they have put themselves into. So to ensure that this does not happen to you, you must make sure that you are able to apply and have a pre-approved mortgage loan.
3. Compromising without searching- now that you know your budget, the best thing you need to do is work around it and not over it. But there are a lot of problems that will come your way, one of the most common one is finding a home that you want, fits your budget, but the biggest problem is that it is too small for your family. Let’s say you have 5 children, all in the school age years, which means there is still a long time before they will be able to move out. Therefore you have to let go of the house you have previously chosen despite the good traits and the budget, you can always be more patient in searching for home in the different FSBO listings and see to it that you and your family can live in comfortably as well as it fits the budget. Don’t lose hope of it does not happen immediately, you can wait for holiday sales or wait till real estate prices drop for you to be able to find a good deal for a home you can afford.