The Most Common Mistakes Buyers Make Today

Buyers encounter challenges in any market, and today's is no exception. With higher mortgage rates, rising prices, and a limited supply of homes for sale, there's a lot to take into account.

However, there's one way to avoid pitfalls – by relying on a real estate agent for the best possible advice. An expert's insights can help you steer clear of some of the most common mistakes homebuyers are making today.

Putting Off Pre-approval

During the homebuying process, a lender will review your finances to determine the amount they’re willing to lend for your mortgage. This provides you with a clear understanding of what you can borrow, helping you grasp the financial aspects before you begin house hunting. Although searching for a home may be more enjoyable than discussing finances, it's crucial to follow the correct sequence. Ensure you obtain your pre-approval first. As CNET explains:

“If you delay getting preapproved until the last minute, you might find yourself rushing to contact a lender and miss the chance to place a bid on a home.”

Holding Out for Perfection

While you might have an extensive list of must-haves and nice-to-haves, it's important to be realistic about your home search. Although the goal is to find a home that meets all your criteria, you may need to compromise, especially given the current low inventory. Additionally, a home that ticks every box might be too expensive. As Investopedia explains:

“When you hold out for the perfect home, you might extend the homebuying process in search of something better. Alternatively, you could end up paying more for a home simply because it meets all your criteria.”

Instead, seek a home that fulfills most of your must-haves and has a solid structure, allowing you to make additional improvements later on.

Buying More House Than You Can Afford

Given today's mortgage rates and home prices, there's no denying that buying a home is costly. While it might be tempting to stretch your finances beyond your comfort zone to secure a house, it's important to avoid overextending your budget. Discuss with your agent how fluctuating mortgage rates can affect your monthly payments. Bankrate advises:

“Concentrate on the monthly payment you can afford rather than the maximum loan amount you qualify for. Qualifying for a $300,000 loan doesn't necessarily mean you can comfortably manage the monthly payments along with your other financial responsibilities. Each borrower’s situation is unique, so consider your entire financial profile when determining how much house you can afford.”

Not Working with a Local Real Estate Agent

This final point might be the most crucial of all. Purchasing a home entails numerous steps, paperwork, negotiations, and other tasks. Instead of tackling everything alone, it's advisable to enlist the help of a professional. A competent agent can alleviate your stress and ensure a smooth process. As CNET elaborates:

"Trying to purchase a home without a real estate agent unnecessarily complicates the process. A professional agent provides valuable legal advice, market knowledge, and assistance, ultimately saving you time, money, and anxiety. Moreover, they enhance your likelihood of discovering the ideal home, sparing you the need to spend countless hours scouring online listings."

Bottom Line

Miscalculations can lead to wasted time, frustration, and financial setbacks. If you're looking to buy a home in today's market, it's wise to reach out to a local real estate agent. Having a professional on your side can help you navigate the process smoothly and avoid these setbacks.