Buying a home requires creating an accurate budget. In this post, we discuss the important items to consider when budgeting for a house.
Entering the housing market can be intimidating, especially if it’s your first time buying a home. It feels like there’s so many things to keep in mind, and you don’t want to make any mistakes. No matter who you are, there are some common home buying mistakes you can watch out for. If you’re able to dodge these five errors, you’re far more likely to have a successful home buying experience. Here are the mistakes to avoid!
Skipping a home inspection
This isn’t the first time, and it won’t be the last, that we mention the importance of a home inspection, but we feel it’s worth repeating. Back in 2020 and 2021, people were skipping home inspections because they felt they didn’t have enough time to complete one. With homes selling so fast, having fewer conditions was essential, and this caused many buyers to take their chances without an inspection. Often, this probably turns out just fine, but occasionally the new owners will end up dealing with issues that might have turned them away from the sale had they known about them beforehand.
With that in mind, one of the biggest home buying mistakes is not getting an inspection, especially in a slower market, where you have the power as a buyer to require one. Wouldn’t you rather know the ceiling has mold, or the roof has a leak, before you commit to the purchase? Home inspections can save you thousands of dollars down the road, and they offer you peace of mind. Plus, they keep you safe by pointing out any potential dangers.
Not getting a pre-approval
A pre-approval is an essential step when you begin your home buying journey. You already know that a mortgage lender needs to approve your application before they will finance your home purchase. A pre-approval puts you one step closer to securing that financing. Lenders can use a pre-approval to examine your financial situation at that current time, and give you an estimate of the mortgage product you might qualify for if you maintain those circumstances. This means that as long as you can keep your situation steady, you have a good idea of what kind of financing you can secure. This helps you determine your budget, and it can help the actual approval process go faster. Skipping this step means you will be house hunting with a blurrier idea of what you can afford, which can come back to bite you come approval time. Remember that a pre-approval doesn’t guarantee anything, but it puts you on the right track!
Not using a real estate agent
There’s a reason real estate agents exist, and that is because they are experts in an industry that can be complicated. They help you navigate the housing market and have a successful buying experience. If you’re not a real estate agent yourself, you shouldn’t try buying a home on your own. You simply don’t have the same experience, expertise, or connections that an agent does. An agent finds properties, arranges tours, helps with offers, and does so much more along the way. They’re an invaluable resource during the buying process, and not using one goes down as one of the biggest home buying mistakes. Apart from the headache you will be putting on yourself, a lack of a real estate agent might prevent sellers from considering you as a buyer. Sellers want an easy transaction, and if they see a buyer trying to do it themselves, they are more likely to expect difficulties.
Going over your budget
Having an accurate budget is crucial, and sticking to it is even more important. If you have created a proper budget, you know what you can and can’t afford. From there, it’s just a matter of obeying the rules you created for yourself. Blowing your budget is easy to do, and can be very difficult to fix. It can lead to financial problems, missed mortgage payments, and penalties. You don’t want to put yourself in debt, and it’s largely in your power to avoid it if you follow your budget. Don’t tour homes you cannot afford, and definitely don’t put in any offers. Your buying budget might increase over time as you build home equity, but it won’t do you any good to overstretch yourself now.
Trying to do it alone!
Finally, don’t make the mistake of buying a home without a mortgage broker! A broker is someone you can reach out to early in the buying process, and they can help put you on the right track. When you meet with a broker, you learn about things like accurate budgeting, improving credit, and applying for the right products. Mortgage brokers also connect you with lenders, making it easier for you to secure mortgage financing. In fact, many lenders prefer clients who come to them from a broker, which means you will have access to more products than a buyer who tries to do it alone. At the end of the day, brokers are on your side and are there to find you the best solution.
Most home buying mistakes are avoidable if you’re on the lookout for them. Using a mortgage broker is an excellent way to ensure you don’t fall victim to any of the errors mentioned above. We can guide you through the buying process from start to finish, and help you purchase your new home with ease.
If you have any questions about your mortgage, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.