“That house you looked at today and wanted to think about until tomorrow may be the same house someone looked at yesterday and will buy today.” –Author Unknown
Buying a home might seem like a fairly straightforward process.
After all, just how hard can it be? All you would need is to have a set of wants and needs for a home and then look for the ideal one that comes as close to your list as possible. While it all sounds easy on paper, the task of finding an ideal home that ticks most of your qualifications and best befits your lifestyle is more difficult than you originally thought. Those considerations in conjunction with real estate being a significant investment would mean that this is an endeavor you should approach with much contemplation and scrutiny insomuch that at times, buying a home can take up to months. In this regard, you would be a hundred percent certain that you will be happy in your choice.
Unfortunately, some homebuyers—most especially first-time homebuyers who are pretty much novices in this entire ordeal—tend to make incredibly foolish decisions in the process. More often than not, a homeowner’s error in buying a home can be attributed to their lack of sense and foresight—all of which easily avoidable are had they done enough research and educated themselves. The good news, however, is that this article has compiled a list of some of the dumbest reasons why people cannot buy a home so that by the time it is your time, you would not be committing the same mistakes. So before jumping the gun and going for that Ametta place for sale, try to review on what you should avoid doing when it comes to home buying in order to be happier to your decision:
1.) Waiting to line up financing
When it comes to buying a home, your first question should be how you should pay for it. After all, real estate property is a significant investment insomuch that reviewing your financing options would be paramount to buying the home that you want. In this regard, your first step in the home-buying process should be the take a look at your financing options and discuss it with a mortgage lender. You would not know how much you can truly afford until you have met a professional who has the necessary expertise to tell you about your options. With this in mind, just because you think you can buy an exorbitantly priced home does not mean your loan for that same home would be approved.
2.) Using a fly-by-night mortgage lender
Much like any industry in the world, the mortgage industry is rife with scams. This means you need to be meticulous in selecting your lenders and ensure that you can trust them. Review their credentials and look for reviews and recommendations as placing your trust in a bad lender can cause a potential deal to fall through. Sometimes, it is not necessarily your fault why your offer was rejected, but rather it is because you decided to partner up with an unreliable or fake lender.
3.) Getting pre-qualified rather than pre-approved
Although they sound about the same, there are distinct differences between getting pre-qualified and pre-approved. Almost anyone can get pre-qualified for alone because all that it involves is a conversation with a lender about the state of your finances sans the exchange of documents. On the other hand, getting pre-approved would entail the gathering of all the essential documents which run the gamut from your tax returns to bank statements, pay stubs and more. All of these would then be submitted for review and only when everything checks out would you have a pre-approval for a certain loan amount that is good anywhere from three to four months (or in some cases, even more). Shrewd sellers would not entertain prospective buyers if they cannot present a letter of pre-approval from a reliable lender which means securing a pre-approval would be pivotal in your home buying venture.
4.) Shopping outside your price range
Having a budget prior to your home search is not only a recommended step to take, but a paramount one as it ensures that you do not fall in love with homes beyond your price range. Unfortunately, having a budget does not guarantee that prospective home buyers would be proof against beautiful homes that are outside their price range. To mitigate this possibility, try to limit your property viewings online or at least refine your searches to only include properties that would fall within your budget. After all, there is nothing quite like the feeling of frustration in seeing a property you can already picture yourself out living in only to find out it is exorbitantly priced.