Ten Mistakes Southern Utah Home Buyers Make

It takes a lot of work and knowledge to buy any Southern Utah home, but in the end, it’s an incredible investment, perhaps even the largest investment you’ll ever make. But many home buyers, especially first-time buyers, make some common mistakes when purchasing a house. Here are the top ten common mistakes made by Southern Utah home buyers, and how you can avoid them.

Mistake #1: Starting Your Home Search Before You Secure Your Financing

A lot of home buyers will start looking at homes right away before they meet with a mortgage officer. This can be a waste of time since they may find out that they can’t actually afford any of the houses they have looked at! If you don’t take the time to get pre-approved, you won’t know how large of a home loan you can get. Once you get pre-approved, you will have a definite price range to look in. You can also take the time to talk with several different loan officers and compare quotes. Like a good agent, a good loan officer should answer all of your questions, and you should be very comfortable with him or her before you sign off on anything. There are a lot of great lenders in Southern Utah. I'd be happy to make a recommendation if you need one.

Mistake #2: Working With the Wrong Agent

Some agents are going to immediately understand your needs and what type of home you are looking for while others won’t. You want to find an agent that you are comfortable working with and that knows about the kind of property you want. Your agent should be willing to spend a good amount of time with you when you look at houses and should coach you through each step involved. He or she should also answer all of the questions you have regarding buying a home. Remember, it’s your agent who will communicate with the seller, so it is very important that you have an agent who knows your needs.

Mistake #3: Never Buying a House

Some people never take the initiative to buy a house at all, despite the fact that it is a very good investment. You should definitely take the time you need to look at as many houses as you want and to learn about financing, but if you find a house that you absolutely love, buy it. If you are afraid of committing to a house quickly and wait too long, you may find someone else has already put a contract on it.

Mistake #4: Buying a Home You Can't Resell

Generally, first time home buyers end up selling their house before they pay off their mortgage. You may be planning on living in your new home for a very long time, but you should still consider how easy it will be to resell the house. A house that is hotly sought after now will, most likely, always draw buyers. You should ask friends, family, and especially your agent for their opinion of the home, and find out how long the house has been for sale. A house that has been on the market for months with no serious offers may have a major problem.

Mistake #5: Not Doing an In-Depth Inspection of the Property

Before you buy a house, be sure to have it professionally inspected for structural damage, safety issues, and other problems. If you skip the professional inspection, you may buy the house only to find that it has a large-scale problem that is now your responsibility to fix. Inspections often bring to light problems, both large and small, that you can discuss with the seller before closing.

Mistake #6: Assuming the Lowest Interest Rate is the Best

While a low interest rate is certainly something to look for when considering a mortgage loan, it’s not the only important line item. Be sure to look at the APR, the origination and discount points, and any fees associated with the loan. Sometimes, these other costs will be so expensive you won’t actually save any money by getting a lower interest rate. Also, be certain that your loan officer separates the origination points (costs of the loan) from the discount points (interest rate reduction points).

Another thing to consider when selecting a mortgage company is the company’s reputation. Ask around and learn about the lender. Can they deliver the loan they promised? You don’t want to suddenly learn that your lender can’t get you the loan they said they could, especially once the seller has agreed to your offer.

When you meet with a mortgage officer, he or she should discuss your options and recommend the best ones for you. Sometimes, the normal 30-year loan isn’t the best option, although many times it is.

Mistake #7: Buying a House That Has a Major, Unfixable Problem

Chances are, you’re not going to find a house that is completely perfect. All houses have some sort of problem, but the house you buy should not have an incurable defect. Defects are things that detract from the property and are usually things that can’t be changed. Examples are a lack of parking or being near a busy street or intersection. It’s nearly impossible to find a house with no defects, in Southern Utah or anywhere else, and you should take into account a house’s defects before you buy it.

Mistake #8: Not Thinking About Growth and Change

While a smaller house might seem like the best bet now, you need to consider the future before you buy a home. Will you be having children soon? Will you want to have a home office? These factors are important when looking at houses. Because the process is so involved (and often expensive), you don’t want to end up looking for a bigger house in a few years.

Mistake #9: Forgetting to Have a Backup Plan

In a perfect world, your closing goes exactly as planned and everything is great. However, we don’t live in a perfect world, so you should hope for the best and be prepared for the worst. Your closing could be delayed by any number of factors, so you shouldn’t count on being able to move out of your current residence the day after closing. In fact, if you say you’re moving out and then find your closing pushed back, you might find yourself temporarily homeless if your landlord won’t extend your lease by a week or so.

If you don’t want to find yourself staying with friends or relatives for a few days, you should remember to terminate your lease at least a week after closing, if not a few days more. This way, you will have a roof over your head in case your closing is delayed and you’ll have a good amount of time in which to move and clean your old residence. Be sure to plan accordingly so you don’t end up stressed over a delay.

Mistake #10: Buying the Most Expensive House on the Street

Huge, expensive houses are almost always on the same street as other huge, expensive houses. This is because a house’s value can actually go down if it is surrounded by cheaper homes. Keep this in mind if you are tempted to buy a very expensive house on a block full of smaller, cheaper homes.