New homes in Aurora Co can be wonderful, but they’re not without their share of potential problems, too. Here are some of the most common mistakes people make when buying new homes in Aurora Co, along with information on how to avoid them. You’ll be enjoying your new home sooner and with less stress, if you heed this advice!
1) Failure to Read the Contract
Perhaps nothing is more important than understanding what you’re signing. Make sure you read your contracts carefully and understand all of their details before signing. After a contract has been signed, it is often difficult to fix problems or change certain provisions later on. If something doesn’t seem right or fair, ask questions before it’s too late. You can also hire an attorney to review a contract before you sign it—and make sure to include that fee into your budget for buying new homes in aurora co! For example, real estate agents don’t have to be attorneys and may not tell you how important it is to have one go over your paperwork.
2) Not Saving Enough for Closing Costs
While closing costs vary by location, they can often cost between 1 and 3 percent of your total home price. That may not seem like a lot, but it will certainly hurt you if you haven’t set aside enough money to cover them. Think of it as an opportunity cost—if you put 20 percent down on a $100,000 home, that’s $20,000; 3 percent of that is $600—money you could put toward improving your lifestyle or investing for retirement. Paying for closing costs with cash is one way to ensure you don’t buy a place without enough money set aside for closing costs.
3) Failing to Do Research
You’re going to be making a big investment, so you should make sure you know what to expect. If you’re new to buying a home, there are a few key things you should do before purchasing one—and taking some time to educate yourself on how everything works are essential. For example, if your first purchase is an investment property, it might make sense for you to hire a financial planner or tax attorney who can help streamline your taxes; if it’s your first time buying a place of your own and as such, there are plenty of factors (like getting approved for a mortgage) that will impact how much house you can afford.
4) Lowballing On Price
Know your budget, and stick to it. Set aside a certain amount of money you’re willing to spend on your new home and make sure to account for things like closing costs, property taxes, and furnishing your home with basic amenities. Don’t go over budget by more than 5% without having a clear understanding of how that additional money will be spent. If you don’t account for these details—and you can’t pay for them out-of-pocket—you may get yourself into trouble down the road. Having a budget allows you freedom in case something unexpected comes up. That way, if something does come up, it won’t break your wallet or put undue stress on you financially.
5) Buyer’s Remorse
6) Lack of Communication Between Buyers and Sellers
7) Inability To Get Pre-Approved Loan Fast Enough
If you want to buy a home, you need to be pre-approved for a loan. You may think that all your information is just sitting there, patiently waiting to be found by a potential lender. Unfortunately, it’s not that easy. If you do not have your financial records neatly organized before applying for a loan, your chances of getting approved will go down drastically. Getting pre-approved is important because it demonstrates both to lenders and sellers that you are serious about buying a new home and can act quickly on opportunities as they arise. Do everything possible to speed up your mortgage approval process and get yourself into position so that when an opportunity arises, you can move with lightning speed towards closing on it!
