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Buyers face challenges in any market. With higher mortgage rates, rising prices, and limited home supply, there’s much to consider.
But there’s one way to avoid getting tripped up – leaning on a real estate agent for the best possible advice. An expert’s insights will help you avoid some of the most common mistakes homebuyers are making right now.
Putting Off Pre-approval
Before you start looking at homes, getting pre-approved for a mortgage is important. This involves a lender assessing your finances to determine how much they will lend you. Knowing this amount will give you a clear idea of your borrowing capacity and help you understand the financial aspect of buying a home. 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 need to be realistic about your home search. Even though your ideal state is to find a home that checks every box, 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 that has most of your must-haves and good bones, to which you can add anything else you may need later.
Buying More House Than You Can Afford
Today’s mortgage rates and home prices make buying a home expensive. While it’s tempting to stretch your finances to get the house you want, it’s important to avoid overextending your budget. Talk to your agent about how changing mortgage rates can impact your monthly payment.
“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 may be the most important of all. Buying a home is a process that involves a lot of steps: paperwork, negotiation, and more. Rather than take all of this on yourself, having a pro working with you is a good idea. 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.
