Buying a home can be an exciting process. However, making poor decisions can cause delays and financial stress. Here are some of the most common mistakes when buying a home and how to avoid them.
Not Getting Pre-Approval
It’s worth getting initial approval, or getting pre-approved for a mortgage, before jumping right into the homebuying process. Not to be confused with pre-qualification, which simply provides a preliminary estimate of how much you can borrow, pre-approval is a more thorough process in which the lender verifies your financial information and provides an initial approval of your financial capacity.
While it isn’t the same as a final approval, which helps you secure a mortgage, it can help you stand out from other buyers and enable you to make a stronger offer. In competitive markets, having a pre-approval letter sends the seller the signal that you’re serious about purchasing a home.
Getting pre-approved also helps you determine your price range so that you can start looking at homes that you can afford. This will help you set limits and know which properties suit your needs.
Skipping the Home Inspection
It’s not unheard of for a buyer to waive the home inspection just to win a bidding war. While this can be appealing to the seller, it also exposes you to risk. A home inspection helps you uncover any major defects that may not be noticeable during the home viewing appointment. Knowing about the true condition of the home will help you determine how much it’s truly worth and whether you’ll need to spend money on costly repairs in the near future.
Home inspections will protect your interest in case of serious issues with the overall structure property or any of its major systems and components. It is always advisable to work with a certified home inspector, who will provide a detailed report with photos and descriptions. If the home inspection uncovers significant issues with the property, you can negotiate repairs or a lower purchase price. You may also decide to withdraw from negotiations altogether if the issues are more than you’re willing to take on.
Not Doing Research on the Neighborhood
It is equally important to scrutinize the neighborhood and the areas surrounding the home. Look into the school district, homeowners association (HOA), local governance, nearby amenities, and environmental factors like noise levels, traffic, street parking, and planned and on-going construction — anything that can affect your quality of life and your enjoyment of your new home.
Before committing to a sale, it would be a good idea to drive around the neighborhood at various days of the week and time of day. This will help you get an idea of how much activity the area gets. Check school ratings and travel distance to the office, shops, and restaurants.
Rushing or Delaying an Offer
Timing your offer can be tricky. On one hand, it’s important to avoid rushing to make an offer to make sure that you’re prepared and that the home really is the perfect match for you. But on the other hand, waiting too long to make an offer could cause you to miss out on your dream home, particularly if the seller is entertaining multiple offers.
When buying a home in any market, it’s important to be decisive. It’s also important to keep in mind that if the seller accepts your offer, you will be expected to hold up your end of the bargain.
Navigate the homebuying process with a local expert who goes the extra mile. Feel free to call me, PJ Lange of Better Homes and Gardens (BHG) Realty at 415.794.1761. You can also send me an email or fill out this form to get started. As a real estate agent and Gold Club achiever, I provide top-notch service to homebuyers in Contati and the surrounding area.