Buying a house is an exciting time, especially when it’s your first house. The process can be overwhelming, as there is a lot to do and a certain order that it needs to be completed in. Each decision can cost you or save you money. That means it’s important to know that you are doing the right things at the right time.
To keep the process moving along smoothly, sidestep the following five things when buying a house:
Looking for a house before talking to a lender
It seems odd to most buyers, but before you start looking for a house, you need to speak with a mortgage lender. A lender will help you determine how much of a house you can afford. They can also look at your credit history, score, income, and assets to determine if you can be approved for a mortgage and for how much.
Some buyers that make the mistake of house hunting before they speak with a lender fall in love with a house, only to learn that they are not able to be approved for a mortgage. If you have already placed an offer on a house, this can be a bad situation for you and the seller.
Making a lowball offer
If you haven’t heard, much of the area has been in a hot seller’s market. That means there is not enough inventory on the market for the number of buyers that are looking. You might be able to make a lowball offer and get away with it during a buyer’s market, but you aren’t going to have much luck in a hot seller’s market.
Many sellers are receiving multiple offers, which means that your lowball offer might not even get looked at because the seller might have other higher offers to consider.
Spend too much money before you close on your house
When you are getting ready to buy a house, you need to avoid making other big purchases. If you were pre-approved and then go out and get an auto loan, it could actually cause you to be denied for your mortgage when you actually apply for it.
Waiting for the perfect house
Some buyers have the idea that there is a perfect house out there. That is anything but true. There is no perfect house out there.
Each house will have its good points and bad points. If you believe that you have found the perfect house, there is a good chance that you will end up convincing yourself to pay too much money so you don’t lose the house. If the house sells to someone else willing to pay more, don’t get discouraged – another house will come along.
Holding back information
When buying a house, you need to be honest with yourself. If you were approved for $400,000 but don’t want to spend over $325,000, then make sure you act accordingly.
Buying a house for the first time can be overwhelming. Making mistakes can cost you greatly. Avoid these five common mistakes to make your process as easy as possible.