Did you know that over 5.6 million homes were sold last year? The real estate market is booming and shows no signs of slowing down. That makes it very competitive for buyers and sellers alike, so it’s important to know what you are doing when you enter the market.
Are you thinking of buying a new home? If you are a real estate newbie, this helpful guide explains what not to do. Here are the top home shopping errors to avoid when searching for properties.
1. Skipping Market Research
Before you dive into the exciting world of choosing a home, make sure that you do your market research. A real estate agent can help you by comparing home prices in the area. This will give you a bigger picture of what homes are worth and it will arm you with knowledge so that you can make good, educated offers on homes when you are ready.
2. Having Too Much Debt
Many people forget that debt is a key deal-killer in the home-buying process. Unless you are purchasing a home with cash, banks will look at your debt to income ratio when considering whether or not to give you a loan. So with that in mind, make sure you have little to no debt before looking for a home.
3. Not Getting a Mortgage Pre-Approval
Real estate professionals agree that one of the top tips in securing a home is getting pre-approved for mortgages. This will help you understand what you can afford. Plus, it will make any offer you put in more competitive because the sellers will know you aren’t wasting their time.
4. Not Looking Into First-Time Home Buyer Programs
If this will be your first home purchase ever, don’t forget to look into first time home buyers grants. There are so many great options out there, and they can help you save money with a reduced down payment requirement, down payment assistance, and other incentives. Every state is different, so check with your state before beginning the process.
5. Making Emotional Home Shopping Errors
One of the biggest traps for home shopping is making an emotional decision rather than a practical one. Buyers may choose a home that they can’t afford because of how it makes them feel. It’s important to consider things logically when making such a big, long-term commitment.
Ready To Find Your Home?
Now that you’ve learned about the top home shopping errors, you can avoid them. Do your homework in advance and learn about the market, and consult with a local real estate broker that you trust to run comparables. Then get pre-approved for a mortgage, look into first-time homeowners grants if you are eligible for them, and then you can begin your search for your dream home.
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