Common Mistakes to Avoid When Buying a Home
Not getting pre-approved before looking at homes
It can be exciting to start looking for a new home but you don’t want to get started until you are pre-approved and have an idea about what you can afford. Meeting with a lender first will provide you with a great deal of information that can help you in the process.
Being unrealistic and inflexible
There is no such thing as a perfect home. You will have to compromise on something. Focus on things that you can’t change - the layout of the house, the structure of the house, where it’s located. Try not to focus on the little things that you can change like paint color, fixtures, etc.
Relying on Zillow for estimates on the value of a home (Zestimates)
Estimates on Zillow are inaccurate. They don't have up to date information, the current condition the home is in, information on the neighborhood, views the property has, etc.
Working with online lenders
The role of the lender is such a huge factor in the home buying process. It can be tempting to jump online and try to get quick information about interest rates etc. We recommend to our clients that they work with a local lender. You want a lender that is responsive and in your time zone. You also want a lender that understands the local area and knows about laws and regulations in your state and incentive programs that could be of interest to you.
Taking on new debt when you are under contract
Accruing new debt could derail your loan because it can change your debt to income ratio (how much debt is going out and how much income is coming in). Wait to make any big purchases until you have closed and you have moved into your new home.
Not working with a Buyer’s Agent
Commit to working with a strong buyer’s agent who will look after your best interests and work with your schedule. Even better if you have a team. Buyer’s agent commissions are covered by the sellers of a property so it’s only to your advantage to have an agent on your side early in the process. Your agent will be in your corner and make sure no details are overlooked and negotiate in your best interest.
If you’re considering purchasing a property in the next 6 months give us a call today so we can provide you with the information you will need to reach your goal. We will be here for you every step of the way.
Call or text Shane, our Team Lead at 541-848-0182