7 home buying mistakes to avoid

When you’re in the market for a new home, it can be an exciting time when you get to daydream and let your mind go wild. However, it’s also a significant financial decision that involves numerous considerations that can make it either a wonderful or stressful experience. Whether you’re a first-time buyer or a seasoned homeowner, it can be easy to let the emotions of your home search get the best of you. It’s why it’s so important to be fully prepared to approach the process wisely and know that several pitfalls can put you at risk for trouble down the road.

If you’re considering purchasing a new home, we’ve outlined seven mistakes you should avoid from the start, which will ensure you end up with the right home for your needs. Here’s what you should avoid.

Pre-approval is a critical first step for any home buyer. Not only does it help a buyer understand how much they’ve been approved to purchase. It also signals to a seller that you are serious about buying. The great thing about pre-approval is that it also helps you identify any issues with your credit that may need to be repaired before you make an offer on a home.

Keep in mind that pre-approval allows you to be a more informed buyer. It takes 10 to 15 minutes to apply, and getting pre-approved doesn’t mean you have to buy right away. But it will help you have a better idea of what you can do so you can start your home search more informed.

One of the important things your lender will ask you is what kind of monthly payment you’re comfortable paying. The basic rule of thumb is to spend no more than 25 to 28 percent of your monthly income on your mortgage. Be prepared to talk to your lender about those numbers from the first time you meet.

If you are honest about your monthly budget, your lender can typically work with you to help you meet those expectations. It will also help you identify which homes fit within your budget so you don’t find your dream home only to be disappointed that it’s out of your budget range.

As you’re searching for a home in the Triangle, it’s wise to work with a local lender that you can meet with face-to-face to develop a working relationship. Not only will you get one-on-one service, but they also have a deeper understanding of the local market. They can also help you find local programs you may qualify for that can help you get into a home even easier.

Both Towne Mortgage of the Carolinas and North State Bank are Raleigh-based mortgage lenders who have the insights and relationships in the Triangle that may help you find the right home for you. They are beneficial partners as you’re looking for a new home.

A home inspection is designed to give you insights into the purchase you’re about to make. As the buyer, you are responsible for hiring an inspector and scheduling an inspection. If you’re tempted to waive an inspection, it’s important to know what information you won’t receive. A home inspection will give you insights into the home’s structure and foundation, the roof, plumbing and electrical, and more.

The great thing about a home inspection is that if you find any issues the seller isn’t willing to repair, you can walk away without losing money if you’ve put that contingency in your offer letter. If you decide not to have an inspection done, you may get into a home that has major issues you haven’t budgeted to repair, which can be damaging in the long-term.

While it’s often advised that buyers have 20 percent saved up for a down payment, that’s not always necessary, particularly for first-time buyers. Still, that doesn’t mean you shouldn’t have money tucked away for your purchase. Many first-time buyers still need to put money down on a home and have additional savings set aside for taxes, insurance, and more, which are collected at closing.

While North Carolina has programs like the NC Home Advantage Mortgage, which provides assistance for first-time buyers, you’ll still need additional cash on hand to help you move, update the home, make repairs, and more. It’s always best to have money saved up to help you move into your new home more comfortably.

If you’re new to real estate, it’s usually not the best idea to rush into the first home you tour. Before you put down an offer on the very first home you see, take your time to get to know the market and what else is out there. Make sure you go into your home search with a wish list. Know what you must have in a home and what would be nice to have. And then keep an open mind.

Once you’ve started shopping around and have had a moment to process the homes that are available and compare them to what you’re looking for, you can approach buying with a clearer vision. That way, you won’t regret a rushed decision down the road.

It’s always beneficial to hire an experienced real estate agent to help you as you look for your dream home. A great agent negotiates on your behalf and knows how to give you peace of mind during the entire process. And they should know the entire process inside and out.

Don’t try to tackle a home purchase alone. Trust the process to the ones who know it well. If you’re not sure how to find the right agent, it’s wise to follow a few tips. Make sure to ask for recommendations from people you trust and consider interviewing a few agents to find the best fit. And do a bit of research to find the one who is right for you. It will be well worth it.

Be sure you follow the tips above for as seamless and stress free a process as possible. And if you have tips to help a new buyer, feel free to share them in the comments below.

The Jim Allen Group provides access to information on this blog/website as a public service for educational purposes only. Although reasonable efforts have been made to ensure that all of the information made available is current, accurate, and complete…[read more]