The Biggest Mistakes Buyers Are Making Today

The Biggest Mistakes Buyers Are Making Today

Buyers face challenges in any market – and today’s is no different. With higher mortgage rates and rising prices, plus the limited supply of homes for sale, there’s a lot to consider.

But there's one way to avoid getting tripped up – and that’s leaning on a real estate agent for the best possible advice. An expert’s insights will help you avoid some of the most common mistakes homebuyers are making right now.

Putting Off Pre-approval

As part of the homebuying process, a lender will review your finances to determine what they’re willing to loan you for your mortgage. This gives you a clear idea of what you can borrow, helping you understand the financial side of things before you start looking at homes. While house hunting can be more exciting than discussing finances, you don’t want to do this out of order. Make sure you get your pre-approval first. As CNET explains:

“If you wait to get preapproved until the last minute, you might be scrambling to contact a lender and miss the opportunity to put a bid on a home.”

Holding Out for Perfection

While you may have a long list of must-haves and nice-to-haves, it’s important to be realistic about your home search. Ideally, you want to find a home that checks every box, but you may need to compromise – especially with inventory still low. Additionally, a home that has everything you want might be too expensive. As Investopedia puts it:

“When you expect to find the perfect home, you could prolong the homebuying process by holding out for something better. Or you could end up paying more for a home just because it meets all your needs.”

Instead, focus on finding a home that includes most of your must-haves and has good bones, so you can add any additional features you need over time.

Buying More House Than You Can Afford

With today’s mortgage rates and home prices, there's no denying that buying a home is costly. While you might feel tempted to stretch your budget to secure the house you want, it's crucial to avoid overextending yourself financially. Discuss with your agent how varying mortgage rates can affect your monthly payments. Bankrate suggests:

“Focus on what monthly payment you can afford rather than fixating on the maximum loan amount you qualify for. Just because you can qualify for a $300,000 loan doesn’t mean you can comfortably handle the monthly payments that come with it along with your other financial obligations. Every borrower’s case is different, so factor in your whole financial profile when determining how much house you can afford.”

Not Working with a Local Real Estate Agent

This last point might be the most crucial. Buying a home is a complex process involving numerous steps, paperwork, negotiations, and more. Instead of handling everything yourself, it's wise to work with a professional. The right agent will alleviate your stress and ensure the process runs smoothly. As CNET explains:

“Attempting to buy a home without a real estate agent makes the process more arduous than it needs to be. A real estate agent can give you professional legal guidance, market expertise and support, which will save you time, money and stress. They can also increase your chances of finding the right home so you don’t have to spend hours scouring the internet for listings.”  

Bottom Line

Mistakes can cost you time, frustration, and money. If you're looking to buy a home in today’s market, let’s connect. Having a professional on your side can help you avoid these common missteps and make the process smoother and more successful.