Avoid these 6 Common Mistakes Buyers Make

When searching for a home, you may imagine a show-stopping movie moment where you walk into the perfect place and know you have found THE ONE. You must have this house and every hope and dream that comes with it. Perhaps it has the wrap-around porch you always wanted or a window seat overlooking the sunrise. Maybe you can imagine yourself in the open kitchen with a giant window that pours in natural light. What is it going to take to get this house?

1. Buying More House Than You Can Afford: When you get pre-approved for a loan, you know the top of your budget. It is easy to reach that threshold in this market with bidding wars and a low inventory of homes. Before going all-in and buying a home at the top of your loan approval, consider other bills that will come up with homeownership. Be sure to reserve money for insurance, repairs, and home furnishings. Even if you secure the house you’ve always wanted, it won’t make sense unless you can enjoy living in it.

2. Searching Before Pre-Approval: It is common for buyers to start looking for homes based on their own calculations of what they can afford. Consequently, you may assume you can buy more house than you ultimately receive approval for with this headstart. You will set yourself up for a major let-down when you’ve seen so many homes out of your price range, and you have to take a step down. Before starting your search, get pre-approved for an accurate estimate of houses you can buy.

3. Investing in Out-of-Town Real Estate Without Listening to Locals: If you are investing in real estate out of town, always listen to the local real estate professionals. Even if you have researched an area, they will know the inside scoop that is vital to your investment.

4. Disregarding Resale Value: Picture this, you’ve found the cottage on the lake that you’ve always wanted. You love the greens, purples, and bold blues of the décor. And the toilet in the coat closet only adds charm to the place. You don’t plan ever to move again, so why not invest? Not so fast. When looking at homes, you should always prepare for the unexpected and consider resale.

5. Skipping the Inspection: You may be tempted to skip the inspection fee. The house looks in pretty good condition from your perspective, right? Do not skip the inspection! Leave it to the professionals to evaluate the condition of your prospective home.

6. Waiting Until the Market Is in Your Favor: Potential homebuyers may wait to buy a home until prices fall. This is a huge mistake as you may be waiting forever. Don't wait to invest in your future.