Date:June 07, 2019
Purchasing a home is a pricy investment. The entire future of your family depends on it, and you want to make sure everything goes without any problems. However, with everything in life, there is a great probability of making a mistake, especially when doing something for the first time. With that in mind, it is crucial to learn how to avoid common home-buyer mistakes.
Do thorough research
There is nothing worse than buyer's remorse. The stakes are even higher when you are purchasing a home. Before you start looking at apartment and home listings, invest some time into research and learn everything there is about the real estate market.
Apply for a mortgage first
One of the first home-buyer mistakes everyone makes is looking at houses before applying for a mortgage. This can backfire in so many ways. First, you don't know if you will even qualify a mortgage or not. Second, not knowing your financial capabilities puts you at risk of looking at houses you can't afford. In times like these, you are even willing to stretch your budget to get the house you want, which is not advised. Third, you can easily lose a house you like if you don't have a pre-approval letter when it hits the market. The market in San Diego is extremely hot and properties can come on and off the market within a matter of days. Finally, being pre-approved shows seriousness in the eyes of a seller. Avoid wasting your time and money, and apply for a mortgage first!
Talk to more lenders
When applying for a mortgage, talking to only one lender is a big mistake. Many people go for the first option on the table, which can result in losing money. Instead, go to multiple lenders and mortgage officers, compare fees, rates, and loan terms. Sure, there's a lot of work to be done, but buying a home is not to be taken lightly.
Overstretching your budget is a no no
Have you ever found yourself in a situation where you want to buy something at one price, but then you see something a bit better, but at a higher price? While this can be acceptable in some cases, when it comes to buying a home, it's not advised. Stretching your budget can get you into serious financial problems. Out of all home-buyers mistakes you can make, this one is one of the most serious.
Decide on how much money you wish to spend on buying a home, and stick to your financial plan. If you think you'll easily be swayed into spending more, only look at houses that do not exceed your budget.
Do not lower your credit score
One thing that lenders do before finalizing the deal is to pull multiple credit reports over time. Your financial state must always remain at least the same as it was when you applied for a mortgage, if not better. Do not learn this lesson the hard way and lose a mortgage because you chipped away a part of your money before closing the deal. Avoid opening new credit cards, or making new loans. Also, don't close your accounts or make any large purchases until the deal is closed.
Carefully plan your relocation budget
Remember that relocation plans are not the only thing you must spend money on. Be sure to save money when moving, because you will need it for a mortgage. The best way to do this is to avoid additional expenses. Pack by yourself or pick affordable movers. There are many more hidden prices that may surprise you, like the gas or hotel bills if you're coming from a far distance. Depending on the case, it can be more affordable to transport your car to the desired location than to drive yourself.
Should you need assistance transporting your car to CA, always look for affordable companies online.
Having trouble with understanding finances?
For many people, listening to a realtor or a mortgage officer talk is an equivalent to hearing a foreign language. If you are not familiar with the terminology or the math behind this process, you should find professional help. The same way you would get your moving estimate online, you can easily get help on the internet. If you need help understanding how a mortgage works, there is a lot of useful information and tools online.
You are not only looking for a house, but a neighborhood as well
Being nit-picky about your new home can be good only to an extent. Do not forget that living in a good neighborhood is better than living in a lovely house. Check what your priorities are! The real estate company you pick will help you in deciding what neighborhood to choose. The best way to find good realtors is to look at their testimonials.
Do not look for a needle in a haystack
One of the common home-buyer’s mistakes is to look for the ideal home. Understand one thing - there is no perfect house. If you are looking for a property without any issues, you'll discover that it doesn't exist. You must learn to separate the important stuff from everything else. Knowing what is acceptable and what is not will help you pick a good house. With this in mind, make a list of all the requirements your new home must have, but be at the same time learn when to be flexible.
Control your emotions
Finding a new home is a life-changing event. However, one of the home-buyers mistakes you should avoid is getting emotionally attached to a house you don't own. Be real and think clearly when making decisions. You should look at buying a house as you would look at a making business deal. There is no room for emotions!