Buying a home is fun and exciting, but it can also be stressful. It’s easy to make mistakes along the way that can come back to haunt you later. Here are some of the things we see that we want our clients to avoid.
1. Not getting prequalified.
When you go to the bank to get prequalified for a mortgage, they’re telling you and potential buyers how much of a mortgage they’re willing to give you. If a seller gets offers from one buyer who is prequalified and one who isn’t, they’ll almost always go with the prequalified buyer. Don’t lose out on your dream home by failing to take this first step.
2. Falling in love with the first house you see.
It’s possible that the first house you see is The One, but how will you know for sure if you have nothing to compare it to? You need to visit several properties to be able to make an informed decision on whether the house and the price are right for you.
3. Offering too much money.
When you get excited about a house, you may be tempted to offer more than the house is worth. This doesn’t just cost you more money—the bank will only give you a mortgage for the amount the house is appraised for. If your offer is too high, the difference between the appraisal and the mortgage might come directly out of your pocket.
4. Spending more than you can afford.
Banks have tightened their lending requirements since the housing bubble burst a few years ago, but they sometimes still offer to finance mortgages at higher amounts than people can comfortably afford. Just because the bank says you can afford a house doesn’t mean you’ll be able to do it without significant financial stress. Look at your budget and make a decision based on your own real numbers.
5. Seeing the home once.
You probably wouldn’t marry someone after the first date. The same thing goes with your house. If at all possible, you should visit the home more than once. And if you can, bring a friend who you know will give you their honest opinion about the house. That way you’ll know you aren’t missing anything in your excitement over your possible new home.
6. Skipping the inspection.
There are a lot of things that can go wrong with a house, and most of us aren’t trained to see them. Professional home inspectors are, and making use of their services has the potential to save you thousands of dollars in repairs and renovations.
7. Failing to factor in all the costs.
Buying a home is expensive. When you run your numbers through a mortgage calculator, you may be getting an overly optimistic view of how affordable your new home is going to be. Have you also added in taxes and insurance? Will your utility bills be higher in the new home? Will your transportation costs increase? Are you prepared to foot the bill for one-time expenses like moving and closing costs? Will you need to redecorate or buy new furniture? You need to consider all of these expenses, and not just the monthly mortgage payment.
At Loeffler Realty, we’re committed to helping you avoid these common pitfalls. We’ll walk you through each step of the home-buying process to make sure you know exactly what you’re getting and how much it’s going to cost. Call us at 301-882-8186, or use our contact form. We look forward to helping you find the home you’ve always wanted.
