Today's Most Common Buyer Mistakes

Buyers face challenges in any market, and the current one is no exception. With higher mortgage rates and rising prices, as well as a limited supply of homes for sale, there is a lot to think about.

However, there is one way to avoid getting tripped up: seek professional advice from a real estate agent. An expert's advice will help you avoid some of the most common mistakes that homebuyers are making right now.

Putting Off Pre-approval

As part of the homebuying process, a lender will examine your finances to determine how much money they are willing to lend you for your mortgage. This gives you an idea of how much you can borrow, allowing you to fully comprehend the financial side of things before you begin looking at homes. While house hunting can be far more enjoyable than discussing finances, it is critical to do so in the correct order. Make sure you have your pre-approval first. As CNET explains:

“If you wait to get preapproved until the last minute, you might be scrambling to contact a lender and miss the opportunity to put a bid on a home.”

Holding Out for Perfection

While you may have a long list of must-haves and nice-to-haves, you must remain realistic in your home search. Even if your ideal situation is to find a home that meets all of your criteria, you may need to be willing to compromise, especially since inventory is still low. Plus, a home that has everything you want may be too pricey. As Investopedia puts it:

“When you expect to find the perfect home, you could prolong the homebuying process by holding out for something better. Or you could end up paying more for a home just because it meets all your needs.”

Instead, look for something with the majority of your must-haves and a solid foundation on which to build anything else you may require in the future.

Buying More House Than You Can Afford

There is no denying that buying a home today is expensive, given current mortgage rates and home prices. And, while it may be tempting to stretch your finances a little further than you are comfortable with in order to get the house, you should avoid going over budget. Make sure to talk to your agent about how changing mortgage rates affect your monthly payment. Bankrate offers this advice:

“Focus on what monthly payment you can afford rather than fixating on the maximum loan amount you qualify for. Just because you can qualify for a $300,000 loan doesn’t mean you can comfortably handle the monthly payments that come with it along with your other financial obligations. Every borrower’s case is different, so factor in your whole financial profile when determining how much house you can afford.”

Not Working with a Local Real Estate Agent

This last one could be the most important of all. Buying a home is a multi-step process that involves paperwork, negotiations, and other factors. Purchasing a home is a multi-step process that includes paperwork, negotiations, and other aspects. Rather than trying to handle everything on your own, it is a good idea to hire a professional. The right agent will reduce your stress and help the process go smoothly. As CNET explains:

“Attempting to buy a home without a real estate agent makes the process more arduous than it needs to be. A real estate agent can give you professional legal guidance, market expertise and support, which will save you time, money and stress. They can also increase your chances of finding the right home so you don’t have to spend hours scouring the internet for listings.”  

Bottom Line

Mistakes can cost you time, frustration, and money. If you want to buy a home in today’s market, let’s connect so you have a pro on your side who can help you avoid these missteps.

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