Top 7 House Hunting Mistakes
home equity articles and tips
Every homebuyer, whether searching for their first home, a retirement property or a bigger house, makes mistakes when searching for a house. Avoid these 4 house-hunting mistakes to reduce the chance that you will experience buyer’s remorse with your next home.
Getting Pre-Qualified Instead of Pre-Approved for a Mortgage
These two terms sound similar but are actually much different. Getting prequalified for a mortgage rather than pre-approved might lead to heartache later when you find the perfect home yet realize that you cannot get a mortgage.
Pre-qualification is the first step in the mortgage approval process. It is usually a very simple process in which you provide information to your lender and they give you a rough idea of what kind of mortgage you qualify for. Pre-approval, on the other hand, involves the lender taking a much more in-depth look at your credit score, income and expenses. With pre-approval, you have a much higher likelihood of actually getting the loan.
Another mistake that homebuyers make is thinking that they will get everything on their wish list when buying a home. When buying a home, having a certain amount of flexibility is necessary. No home is perfect. Therefore, make a list of things that you must-have and a list of things that you want. Don't give up on at home just because it does not have everything that you want. Often times you can get a great house and add to it in the future to include some of the things you want.
Not Carefully Researching the Neighborhood
Although you may have found your dream home, if the neighborhood is a nightmare it will make living in the home a daily ordeal. Therefore, ask yourself the following questions when searching for a home:
- “Do I feel safe here?”
- “Are there good schools close by?”
- “Is there access to nearby recreational activities?”
Not Having a Buyer's Agent
Many home buyers use the listing agent to handle their real estate transaction. According to the National Association of Realtors, as many as 10 percent of residential transactions are represented by one agent. This means that the listing agent for the property likely represents both the buyer and seller. This is a big mistake. If you were to face a lawsuit, would you use the same attorney as the person suing you? No, well for the same reason, a buyer should not use the listing agent. A buyer’s agent is a trusted professional that works specifically with you, the buyer, to help you find the right home. An agent will help you negotiate the best deal and truly steer you in the right direction when it comes to buying a home. Consider using an agency like the services offered at Cudd Realty to assist you in your home buying process.
Although house-hunting can be stressful for any home-buyer, following the above advice will help the process go much more smoothly.
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