Real estate is confusing, scary and mysterious to folks not involved in buying and selling homes every day. Hey, it’s understandable, but it doesn’t have to be that way. There’s actually a step-by-step process to buying a home and, if you follow the steps (yes, in order) it’s a lot easier, far less confusing and not at all scary.
We see a lot of mistakes that homebuyers make and they happen mainly because they didn’t follow the process. Here are three mistakes you should know about so that you can avoid making them.
1. Not preparing
Homes cost a lot of money yet every week we see buyers either online looking at homes or out visiting open houses without a clue as to how much they can spend on a home. The very first step in the purchase process is to see a lender to figure out how much you can spend.
Aside from the fact that a letter from a lender will go a long way with a seller, you won’t waste your time looking at homes you can’t afford.
2. Maxing out the loan
Just because the lender will loan you $300,000 doesn’t mean you should spend that much. If you use the services of an accountant now is the time to pay him or her a visit. Find out how much of that money you should spend to have a comfortable monthly mortgage payment with money left over for emergencies.
3. Letting emotions rule
Boy, do we know how easy it is to fall in love with a house! Some homes just reach out and grab even real estate professionals.
Try to approach the home-buying process with your emotions detached. Sure, it’s not easy, but it’s necessary. A home is a financial investment and, hopefully, somewhere you’ll live for the long term. Try to look beyond the staging and the allure of the features that are attracting you so that you can see the bones of the house – the flow and the floor plan. Picture the home with your furniture and your family in it. Does it fit your lifestyle? Will it be comfortable?
Avoiding these three common mistakes gives you a leg up on the competition in the St. Louis Park real estate market. While those folks are making them, you’ll be buying!