The day you close your new home purchase should be the most exciting days of your life. Regardless if it is your first home, or if you are an experienced buyer, getting the house you want is cause for celebration. But, you never want the celebration to be short lived because you made a mistake at some point in the process. A mistake made throughout the process of buying a new home can have a negative lasting impact for years to come. Fortunately, most of the mistakes can be avoided with a little patience and the guidance of your real estate agent. Here are four common home buying mistakes every buyer needs to avoid.
Not Having/Sticking to a Budget. Most buyers have a vision for what they want in a house. Unfortunately, the vision does not always match reality. What typically happens is the more houses you see the more you want. Even if you start with a budget it is easy getting tempted by what you can buy with just a little more added to your monthly payment. Before long $20 more a month turns into a $50 and the next thing you know start to justify an extra $100-$150 a month. As difficult as it may be at times you need to always establish and maintain a strict budget. You need to think of how it will be living in the house three, six and nine months down the road. Getting in the house is not the goal. Enjoying it comfortably for years to come is.
Submitting Lowball Offers. Everybody wants to get the best possible deal they can. In the world of real estate there are constant stories from buyers getting huge discounts on their dream home. The reality is that these stories are the exception rather than the rule. Getting a steep discount usually means inheriting costly problems from the seller. Where many buyers lose their dream home is by submitting lowball offers. Most sellers not in a distressed situation will not consider an offer well below the asking price. Instead of starting negotiation you insult the seller to a point they may not even counter. If you want the property you can still offer your price but make sure you can justify your number.
Not Updating Mortgage Items. Getting your offer accepted is only the start of the process. Once you get the ok from your real estate agent on your offer you are thrown into action. You and your lender need to get things going and get your loan approved asap. Instead of complaining about the seemingly unnecessary items the lender is requesting you are better served getting them as quickly as possible. Even before your offer is accepted you should start accumulating the items you may need. Save a copy of your most recent paystub or bank statement so you can send it over and get it to the lender without delay. The loan approval process has gotten better in recent years but is still a challenge if you do not provide what the lender is looking for.
Not Listening to Your Real Estate Agent’s Advice. Buying a home is a tense, emotional period. There are many times in the process when it is easy letting your emotions push you to decisions you don’t necessarily want to make. If you enlist the services of a real estate agent you need to listen to their advice. They have your best interest in mind and will protect you from yourself. You may love a property, but they will advise you not to overpay. They will find items on the inspection that should be rectified prior to moving forward. There are a handful of times throughout the process they will intervene and make sure you are protected.
Buying a home should be a time of joy and excitement. You don’t want to get in your home only to discover you are stretched with the payment or you should have fixed a problem. Learn from the mistakes of others and avoid these four common homebuying mistakes.