Home Buying Mistakes to Avoid
The process of buying a home presents a long list of obstacles a buyer must navigate to come out on top. Here are some common mistakes homebuyers make that you should avoid:
Tunnel Vision – First time homebuyers often get so focused on what they hope to get out of the process that they do not see anything else around them. The problem with this is they miss out on other potentially better opportunities lying just out of view. Setting goals and expectations is one thing but remember to remain flexible or the process could take much longer than necessary.
Not Being Prepared – While the industry and professionals aim to provide all information upfront, there is always the probability that unexpected costs or obstacles could arise during the process. Being prepared for last minute fees or setbacks can help reduce stress and keep the process chugging along.
Maxing Out – Just because you have been approved for a specific loan amount does not mean you should spend every last cent. Successful homebuyers often save a good percentage of money to deal with moving costs, home repairs, or other life emergencies. Spending all of your money is generally viewed as an unwise move.
Shopping First – While it can be exciting to go out and start shopping around for a home immediately, doing this before getting pre-approved is just setting yourself up for failure. The pre-approval process, while generally not incredibly time-consuming, can prevent you from getting the home you have your heart set on. A pre-approval not only allows the borrower to establish a realistic budget, but it also enables the buyer to move quickly once a desired property is found. Completing these steps out of order could throw the process off and generally forces the borrower to start over on the search for a home.
Skipping the Inspection – A smart buyer wants to know everything there is to know about the home before they buy. Skipping out on a home inspection could mean potentially drastic and expensive problems in the future. Knowing exactly what the house holds could mean smarter buying decisions.
Getting Emotional – It is natural to get emotional and attached to properties during this process. However, the more the borrower can push these feelings to the side, the more successful they are likely to be. Getting set on one property and putting “all your eggs in one basket” rarely works. While shopping for a home, you will likely visit many properties that are exceptionally different. Be organized in what you like or do not like about each when making decisions. The market is known to move exceptionally quickly when it comes to bidding and buying. Keep this in mind so you don’t let the system get you down. Get your head in the game and you will be successful.
Setting Unrealistic Expectations – Since first time homebuyers are new to the process, it is common to go into the market with a long list of expectations. Try to keep these expectations as realistic as possible to avoid getting disappointed. Know the going rates in your area, the average listing prices of homes, and what you can handle financially. Knowing all of this will allow you to limit your home searching results, develop a list of qualities you would like your home to have, and effectively navigate the market to homebuying success.