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Experienced buyers are less likely to make mistakes during the home buying process. However, this doesn’t mean that mistakes still don’t happen. In this article, we’ll go over the most common home buying mistakes that even seasoned buyers make, along with how to avoid them moving forward.
Purchasing a home is an exciting time, but it is definitely not without its complexities. As a result, even if this is not your first home purchase, you can still make some major mistakes if you are not properly prepared. For starters, many home buyers are neglecting to do the proper research and financial prep.
Clearly, both of these steps in the home buying process are important and significantly impact your purchase decision. But that’s not all. There are many common mistakes that people make when looking for a new home for the second or third time. Thus, to ensure that you do not make the same mistakes, here are a few key examples to keep in mind.
Similar to not being thoroughly prepared, another mistake that experienced home buyers make is that they try to rush through the process. They feel like they understand exactly how it is going to work because they have bought a home before.
Therefore, they end up rushing, making a few key mistakes in the process. Remember that this is an important financial decision, and it is important to take the time to get it right. Nobody should try to rush through this process when they are looking for a new home.
As a previous home buyer, you know how important it is to put yourself in the best negotiating position possible.
And one of the best ways to do this is by getting pre-approved (not just pre-qualified) as soon as possible and before going house hunting. This is crucial still because not only do you need to know what you can afford first, but you also have to figure out how much you can borrow.
Moreover, just as equally important as finding your dream home, picking your finance package carefully before home shopping is crucial. Therefore, you should make it a point to check out your options. This means researching several lending institutions or at least utilizing local mortgage professionals who have access to a range of lenders, mortgage companies, and finance products.
There is no denying that the ongoings of the housing or real estate market matter. But not necessarily more than your own current and future housing needs. In general, the market moves in cycles, and there are times when a given market better suits buyers, times sellers have the upper hand (when prices are booming), and when the market is balanced.
However, waiting for the perfect time or for prices to go down may mean missing out on your dream home that meets all your needs. Remember that if you know your budget, your finances are organized, and you have given serious thought to your needs, then possible short-term market conditions should not heavily influence a long-term lifestyle decision.
Another common mistake seasoned buyers tend to make is being enticed by the more expensive property or the house that is too far beyond one’s budget. However, buying a home that’s way out of your price range could well derail your finances in the future.
Of course, it is human nature sometimes to want a little more than we can afford, and there are always real estate agents that are waiting to talk you beyond budget. But do not be tempted –spending more than you can sensibly afford leaves you exposed to potential financial shocks, including rises in interest rates.
That said, your budget should be reasonable for what you are looking for, where you are house hunting, and should even have a little wiggle room just in case. Overall, it is in your best interest to also allow for changes in your future circumstances.
Lots of people try to figure out exactly how far they are going to be from school or work when they are looking for a home. On the other hand, people also need to think about traffic patterns. Just because a home is within a few miles of school or work does not necessarily mean that the commute is going to be easy. Think about the traffic patterns before making a decision.
Many people who are buying a home for the second or third time are planning on being in that home for decades. Therefore, it is important to think about the future of the neighborhood. What is going to happen in the local area? How is that going to impact property values? These are important questions that should be answered before signing on the dotted line.
Last but not least, if you have been searching for a few months but have yet to find your dream home or maybe you need to move sooner rather than later—whatever the reason may be–opting for the “fed up” home purchase is a common mistake. It may be daunting just thinking about looking at more homes, but you should avoid buying a property in desperation.
Rather than buying out of frustration, it might just be time to consider another area, re-think your budget, go over your must-haves lists again, or get further assistance home shopping in order to save you time and even find a few possible off-market properties.
Ultimately, when experienced home buyers are looking for a new home, it is important to think about these mistakes ahead of time and avoid them. So, do yourself a favor and take the time to think about these mistakes to ensure you avoid them down the road. That way, you can make sure that you end up with the right home at the best price possible.
Do you have questions about home loans or need further assistance with the home buying process? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages or the home buying process.
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