6 Ways Home Buyers Royally Mess Up The Home Buying Process
There are many ways for home buyers to mess up when buying a house. Even experienced home buyers tend to trip up once in a while.
Unfortunately, these mistakes can cost a homeowner a lot of time and money. To help home buyers avoid the many mistakes that can be made, consider these top six ways buyers mess up during the process.
Selecting a Lender Without Research
Buying a house is going to cost home buyers a lot of money. It is not like the homeowner can simply return the home back to the previous owner and say “well this mortgage just is not for me.”
This is why home buyers must learn about mortgages and lenders before selecting one. Do not just choose a bank because that is the lender that has always held your checking account.
When getting pre-approved with a lender be prepared to provide plenty of paperwork. So many people stick with the first lender they talk to because they do not want to go through the process multiple times.
The hardest part is getting the right paperwork together and then it is easy from there. A potential homeowner just has to bring in the most recent documents to each lender to find the best one.
Being Too Conservative
Of course, no home buyers should max out their budget just to get a house and end up feeling broke for the next thirty years. However, looking at houses that are completely under budget can also lead to frustration. Especially, if the home buyers have not told the real estate agent what their actual budget is.
It is easier to get all of the things home buyers want in a house if they spend more money. However, that does not mean that every home that costs more is worth it.
But a house that is priced accurately and one that fits all the homeowners’ needs is going to be a perfect fit even if it does cost a bit more. Be truthful about the max that is available so you can find the right home.
Letting Wonderful Houses Go
Buying a house is a big step for anyone. That being said, it does mean paying large sums of money towards a mortgage each month and living in one home for a long period of time. And this commitment can be scary. This can lead to many people walking away from wonderful houses because of silly problems.
Home buyers need to keep in mind that there is no perfect house. Unless a homeowner builds a home from scratch in their dream neighborhood, no existing home is going to fit every aspect of a buyer’s criteria. Expecting to find the perfect house is going to lead to disappointment and regret down the road. Find the home that is almost perfect and think of the ways that it can be updated to make it into that dream home.
Making Bad Offers
A lot of home buyers think that a seller is always going to counter offer. Which is why they start with an offer that is near rock bottom.
While some sellers may counter, many will just walk away from a buyer that seems like they will be difficult to haggle with. Make an offer that reflects the current market, do not just cut twenty thousand from the asking price to try to get a deal.
Forgetting About Closing Costs
The costs at the end of a sale can come as a huge surprise if a buyer is not prepared. Closing costs can be anywhere from two to seven percent of the purchase price of the home. The more expensive the home the more a home buyer is going to need to pay at closing. To be ready for this, home buyers will want to save back at least seven percent to cover these costs.
Going on a Spending Spree
When the end is in sight many people start buying new furniture and appliances. They take out new credit cards or even apply for small loans to get all the new items for their new home.
If the house has not been closed on these changes to a buyer’s credit can actually stop them from getting a house. The lender may deny their loan and they will be stuck with new items with nowhere to put them.