Use These Insider Tips to Avoid Common Mistakes That Can Cost New Homebuyers in Big Ways
Buying a home in Texas can be a dream come true. It can also be a nightmare if you make the wrong moves and don’t fully understand the homebuying process. To help you avoid some common missteps that could drain your time and wallet, here are the most common mistakes to avoid.
With these insider tips, you can navigate the home buying process like a pro and be in a much better position to secure the home you have your eyes on!
Homebuyer Mistake #1: Shopping Without a Preapproval
You need to know what a lender is willing to finance for you before you start shopping for homes. This will help you set a realistic price range, so you can focus your house hunt on options you can truly afford.
Other benefits of having a preapproval include:
- Standing out as a serious buyer
- Being able to make offers immediately
- Speeding up the final mortgage approval process
Without it, you could lose ground to another buyer who does have a preapproval in hand.
Homebuyer Mistake #2: Not Knowing or Sticking to the Budget
Your budget may not be the same as the amount a lender has preapproved you for. So, make sure you take a close look at what you can afford to both put down and pay monthly.
You should also budget for any moving costs, updates to the new home you need to make, and any other expenses you foresee.
Without a budget, it can be much easier to get in over your head. And that can make homeownership a stressful, not satisfying, experience.
Homebuyer Mistake #3: Not Shopping for a Mortgage
Just like houses, lenders can be very different. In fact, across different lending institutions, you can come across an array of programs, rates, terms, and more. So, look for the lender who can give you the best deal. And don’t forget about options like FHA and VA mortgage loans.
If you don’t shop around for a mortgage loan, you could end up paying far more in interest, loan fees, and other costs.
Homebuyer Mistake #4: Running Up Credit Charges
New lines of credit and big purchases on credit can impact your credit rating. If your credit takes a big enough hit, you have less favorable terms. You could even face challenges getting the final mortgage loan.
So, avoid doing anything that’s going to mess with your credit rating. Continue to pay bills on time, so you have no problems or changes when it’s time to move forward with the loan.
Homebuyer Mistake #5: Letting Emotions Take Over
Buying your first house is exciting! And when you find a home you want, you may feel attached immediately, and emotions can run high. When they do, they can make you more impulsive and more likely to overlook critical issues or potential flaws.
For example, overly emotional homebuyers are far more likely to:
- Miss important defects or drawbacks
- Put themselves in a poor negotiating position
- Overpay for something they want
So, try to keep a level head. When possible, take your time looking at homes. Also, get some feedback from people you trust. Another pair of eyes and a second (or third) look are never a bad idea when you’re making a big decision like buying a house.
Homebuyer Mistake #6: Forgetting About Closing Costs
On average, closing costs are 3 to 5% of the price of the home being purchased. These costs can vary but generally include (and may not be limited to):
- Mortgage insurance
- Appraisal and survey costs
- Attorney fees
- Property taxes
- Escrow fees
Buyers and sellers negotiate who pays these costs. While some may agree to split closing costs, buyers can end up paying more when, for example, it gives them an edge in a competitive housing market.
Homebuyer Mistake #7: Not Working with a Realtor®
At the end of the day, an experienced Realtor® can help you avoid major mistakes while facilitating the homebuying process. That can be priceless when it comes to making a deal, reviewing contracts, and closing on a home.
If you’ve found your dream home in Texas, the best way to simplify the next steps and get cash back at closing is to work with New Home Gurus.
Shopping for a Home in Texas? We Can Help!
New Home Gurus makes it easy to buy your dream home in Texas. Our Realtors® help with everything from offers and negotiations to contracts and closing. Plus, we’ll split our commission with you at closing! Homebuyers who work with New Home Gurus can get back an average of $4,500 to $12,000 at closing.
How Much Cash Can You Get after Closing?
Call (281) 668-8124 to Find Out Now
We are standing by, ready to answer your questions and explain the details of our commission-sharing program.