Homebuying Mistakes to Avoid
Thinking of buying a home in East Texas? It’s common for buyers to jump into the search without proper preparation… which can lead to some costly mistakes! Don’t lose money (or your dream home) like too many buyers before you; avoid these common homebuying mistakes at all costs.
7 Homebuying Mistakes to Avoid
Not budgeting properly or overspending
One of the most important things you can do when buying a home is to create a realistic budget based on your current spending. How much can you really afford to spend per month? It’s easy to be idealistic about what you can afford, and how much you might be able to cut back on spending, but it’s best to be realistic about your habits.
Forgetting about additional costs
When calculating your budget, do not make the mistake of overlooking some of the other costs of homeownership—like regular maintenance, utilities, insurance and taxes, and one-time expenses for repairs or updates. Remember, the price of the home is far from the only thing you’ll be paying on a regular basis!
Not shopping lenders and rates
Another common buying mistake: signing on with the first lender you talk to. Just because you bank with a certain company, doesn’t mean they’re going to give you the best deal. It’s always a good idea to shop around, not just to check rates, but also to find out more about other loan options that might be available to you—FHA loan, USDA loan, VA loan, first time homebuyer programs…
Not getting preapproved first
When you start shopping around for lenders, they’ll likely want to discuss your finances a bit and even ask you if they can run a credit report to get you “prequalified”. Many buyers, fearing the repercussions of a credit check, will refuse. This is a big mistake! Getting prequalified won’t obligate you to any one lender, and the credit check will only hit your score once, even if several lenders run your credit.
The advantages to getting prequalified far outweigh any downsides: You determine that you CAN qualify for a loan (and there are no red flags), you determine how MUCH loan you qualify for, and you show sellers that you’re a SERIOUS and QUALIFIED buyer.
Not using an agent
Buying a home is easy, right? You find one you love and make an offer. But what about negotiations? The inspection? All the legal paperwork? Do you know what happens at close? What additional requirements are there when using an FHA or VA loan? You probably don’t know, but do you know who does? A real estate agent. And as the buyer, you don’t pay that agent’s commission; the seller does. So… why would you not use a real estate agent?
Being too strict on your wishlist
Buying a home is a pretty big deal. It’s a lot of money, so it’s easy to get idealistic about finding the “perfect” home. But once again, it’s important to be grounded; unless you have an unlimited budget or are building your home from scratch, the “perfect” home probably isn’t going to happen. Instead, you’ll want to focus on figuring out what you absolutely NEED in a home, versus what you WANT or would like to have.
The “right” home should meet all of your NEEDS, then satisfy at least some of your WANTS.
Making emotional decisions
Especially for first time buyers, it’s easy to fall in love with the first home that (seems) to hit a lot of items on your checklist. But before you start planning your life in that cozy living room or that glossy gourmet kitchen, take a step back and really look at the house.
What’s the neighborhood like? Is the house really in your budget? What work needs to be done? Does it actually satisfy your NEEDS or are you overlooking something because you see something you WANT? Could there be any potential maintenance or structural problems lurking behind fresh paint and sparkly updates?
Buying a Home in Lindale?
Are you thinking of buying a home in Lindale or East Texas? Leslie Cain Realty is here to help! Browse our real estate resources or contact us to learn more about what we can do to ensure you avoid these hombuying mistakes and find the perfect home in just the right location.