A lot of excitement comes with purchasing a home. Picturing yourself and your family in the home of your dreams along with all the memories you will create is a great feeling that motivates most people when stepping into the home buying process. It’s important to understand, however, that along with excitement, the process of buying a home can be stressful and it is very easy to get caught up in the process and make some common mistakes along the way. Doing a little prep and research can help you avoid these mistakes which we’ve highlighted below.
Not Getting Preapproved
One of the first things you will want to do when starting your search for a home is getting a pre-approval from a mortgage lender. Not only will this help in determining how much home you can afford, but it will also help to rule out homes that are out of your price range. Lenders will evaluate your income, credit and debt to help determine how much you will get approved for. Another benefit of getting a pre-approval is that it will give you an advantage when putting an offer on a home.
Not working with a qualified real estate professional
There are several advantages to working with a qualified real estate professional. A real estate professional provides expertise in real estate transactions and are working with clients every day. An experienced agent knows the ins and outs of the home buying process and knows how to negotiate in the best interest of their client. A qualified agent stays up to date on market trends and are familiar with the types of neighborhoods that are of interest to their clients. They also have access to the local multiple listing service (MLS) and can setup searches for their clients so they can see what properties are currently on the market and that meet the needs of their clients. Over 70% of homes are sold with the help of a real estate agent and the agents don’t get paid unless they help you achieve your end goal.
Waiting for the perfect home
There is no such thing as the perfect home unfortunately. Making the mistake of turning down properties because they don’t check all your boxes will leave you losing out on great opportunities. This will also limit your search and make the process that much more difficult. Creating a list of must-haves will help in your search but you will want to keep an open mind when searching for a home.
Not shopping around or doing your research
Lastly, take your time to shop around for both the house and the financing. With the help of your qualified agent, you will want to do your research on the market and know what to expect before diving into the home buying process.
Buying more home than you can afford
The first common mistake that home buyer’s make is looking for or buying more home than they can afford. Purchasing a home is an investment that will have a long term impact on your finances. As tempting as stretching your budget might be, you always want to try and stick with your budget. Some consequences of buying more home than you can afford are the increased possibility of foreclosure in the future, as well as having less funds available to cover your other monthly expenses. A great way to avoid this mistake is by determining what you want your monthly mortgage payment to be. You will want to analyze your finances and consider your income and monthly bills. Another thing to consider is annual property tax, homeowner’s insurance costs, and an estimated mortgage interest rate for your mortgage.
Are you looking to buy a home? The DV Real Estate Group’s team of dedicated Jersey City real estate agents specializes in working with clients to help them buy their home in New Jersey. Contact the DV Real Estate Group today!
