From Your President of the Pee Dee REALTOR ® Association Amy McCalman Kirby
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 look at your finances to figure out what they ’ re willing to loan you for your mortgage . This gives you a good idea of what you can borrow so you can really wrap your head around the financial side of things before you start looking at homes . While house hunting can be a lot more fun than talking about 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-tohaves , you need to be realistic about your home search . Even though your ideal state is you find a home that checks every box , you may need to be willing to compromise – especially since inventory is still low . Plus , a home that has everything you want may be too pricey . 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 , look for something that has most of your musthaves and good bones where you can add anything else you may need down the line . Buying More House Than You Can Afford With today ’ s mortgage rates and home prices , there ’ s no arguing it ’ s expensive to buy a home . And while it may be tempting to stretch your finances a bit further than you ’ re
comfortable with to make sure you get the house , you want to avoid overextending your budget . Make sure you talk to your agent about how changing mortgage rates impact your monthly payment . Bankrate offers this advice : “ 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 one may be the most important of all . Buying a home is a process that involves a lot of steps , paperwork , negotiation , and more . Rather than take all of this on yourself , it ’ s a good idea to have a pro working with you . The right agent will reduce your stress and help the process go 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 want to buy a home in today ’ s market , connect with a local REALTOR so you have a pro on your side who can help you avoid these missteps .
10 - REAL ESTATE WEEKLY www . peedeerealestateweekly . com Equal Housing Opportunity