Stay on track when shopping for a new home by avoiding these situations. Here is a list of common home buyer mistakes that people can make.
Shopping Over Your Budget
There is a good reason why the bank pre-approved you for a particular mortgage amount. A pre-approval is used to determine the price range of homes to shop in. If you shop over your price range, you will most likely fall in love with a home that you can’t afford. Do not make the mistake of viewing homes out of your reach.
Forgetting to Factor in Future Needs
What will you need in 5 or 10 years? Try to predict your future needs and your immediate needs. Buying a home now that’s big enough to accommodate a growing family or a home-based business may be a better financial move than having to find a larger place in a few years. Not planning could result in moving more than you would like. Do not make the mistake of not planning your future needs.
Thinking You’ll Get Everything on Your Wish List
Avoid being closed-minded during your home search. This can result in missed opportunities. Sit down with your real estate agent before searching for a home and create a want/need list. Your wants list would be things you don’t necessarily need but wish to have, such as an attached garage, updated kitchen, or a bonus room. When shopping for a home, remember that some lenders offer the Purchase Plus Improvement Program. Turn any home into your dream home and include the cost of renovations into your mortgage. Read more on the program. The goal is to find everything you need, as well as some items you want, all while staying within your budget.
Not Researching a Neighborhood
You may be living in your dream home, but your neighborhood is awful. If schools and parks are an important factor, you should go check them out personally. Speak with the principal or the parents waiting to pick up their children. Today’s buyers can also gather a ton of neighborhood information from real estate blogs, Facebook chat pages, and Google. Do your research before making an offer on a home in an unfamiliar neighborhood.
Being an Emotional Buyer
Keep your emotions under control. Don’t get so attached to a property that you buy with your heart and not your head. It’s often difficult to look at the pros and cons of a home rationally if you let yourself become too emotional about a particular property. Listen to the advice your real estate agent offers you. Keeping your emotions under control will help you make a more informed decision.
By avoiding these common home buyer mistakes, you will be more confident in the home you choose to buy.