Homebuying can be an exciting time, but it’s also important to avoid making any mistakes that could derail your entire experience. Luckily, we’ve put together a list of 6 Common Home Buying Mistakes To Avoid in 2023.
Pie-in-the-sky thinking can limit your real estate search and cause you to overpay. Instead, focus on finding a home that meets your basic needs.
1. Failing to Get Pre-Approved
Home Buying mistakes can be costly. From choosing the wrong lender to buying a house you can’t afford, these errors can leave you stuck in a situation you regret for years.
To avoid these mistakes, one of the first steps you should take is to get pre-approved for a mortgage loan. This process gives you a clear picture of how much house you can afford and shows home sellers that you are a serious buyer.
Getting a full pre approval also allows you to shop with confidence and compare lenders’ fees, interest rates and closing times. This can save you money and make the homebuying process smoother.
2. Failing to Look Around
Buying a home can be overwhelming, but that shouldn’t stop you from making the best possible decision for your lifestyle. It’s tempting to focus on finding a home that checks every single box, but looking for the unicorn can limit your real estate search and potentially make you overpay.
It can also lead to regrets down the road. From choosing the wrong lender to overlooking resale value, mistakes in the home-buying process can be costly. But, with proper preparation and research, you can avoid these common home-buying mistakes! These errors could have far-reaching effects for years to come. Here are some tips from real estate pros.
3. Failing to Make a Competitive Offer
Buying a home is a high-stakes process that can leave you feeling elated and exhausted. Many first-time buyers get caught up in the excitement and rush into the process without enough forethought, which can lead to mistakes.
One of the biggest mistakes is shopping for a home before getting initial approval (or preapproval). This can make it difficult to save enough money for closing costs and a down payment, and may also prevent you from addressing items on your credit report that could limit loan terms.
Another mistake is waiting too long to place an offer. In a seller’s market, this can put you at a disadvantage.
4. Failing to Negotiate
Purchasing your first home fulfills a lifelong dream for many. However, the process of becoming a homeowner is often complex and can be filled with potholes. Mistakes in the mortgage and home buying processes can be costly.
For example, buyers may fail to take into account typical maintenance costs and other expenses when estimating their monthly budgets. As a result, they may find themselves in debt for more than they can afford.
Similarly, buyers may get too excited about a property and overlook negatives like railroad tracks that run behind the yard or being within earshot of a busy freeway. A good real estate agent can help you make a smart purchase by providing comparable home sales data and negotiating on your behalf.
5. Failing to Have a Game Plan
Buying a home is more than an emotional milestone; it’s also a major financial commitment. That’s why it’s important to have a game plan when you’re looking for your dream home.
It’s easy to get caught up in the excitement of homeownership and make mistakes that could have far-reaching consequences. If you have a plan, it’ll help you avoid these common home-buying regrets in 2023 and beyond.
For example, some buyers get so excited about a house that they overlook its negative features—like being within earshot of a noisy railroad track or roaring freeway. Or, they skip the home inspection altogether. That’s a big mistake.
6. Failing to Read and Understand the Closing Documents
Buying a home is exciting, but it’s important not to rush into things. Doing your homework and taking your time throughout the process can save you money, headaches, and heartache. Avoid mistakes and be sure to know what does a home warranty cover so you have all the necessary information to make a decision.
It’s also essential to carefully read and understand the contracts and agreements associated with buying a home. This includes the mortgage loan agreement, closing disclosure and other documents. Ask your real estate agent to explain any part of the contract that you don’t understand.
For example, if a seller has recently had some work done on the home, it’s important to make sure that all of the work was performed by a licensed contractor. This can prevent you from having to pay for expensive repairs in the future.