Buying a new house can be very emotional. However, you shouldn't allow these emotions to defeat you as you might end up making several mistakes. In this highly competitive housing market, you need to be strategic to get the home you desire.
Here we have a few easy and best methods, which you need to follow while hunting for a house and applying for a mortgage, that will direct you towards success. Once you understand how you can avoid house hunting mistakes and what to expect, you can easily find the best house for yourself.
Purchasing a new house can be one of the biggest investments that you will make in your life. Here are a few points that you need to keep in mind:
- You should be able to appropriately understand your present needs and requirements as well as predict your future needs.
- Always consider looking for a house that not only looks good but also is appropriate for its size, cost, and location among a few others.
While hunting for a house, here are a few important factors that you should consider looking for:
- Check the roof, plumbing, electricity, heating, cooling units, and the size of the house.
- Have a look in the kitchen, patio, deck, and bathroom, but of course, it isn't mandatory.
Don’t forget to obtain mortgage pre-approval
If you want to crack a deal in real estate, consider seeking the preapproval of a mortgage. Here are the two benefits of a preapproved mortgage:
- You will have good knowledge about your house-hunting budget.
- It will communicate to the real estate agent that you are a good candidate for the deal.
While signing up for the mortgage pre-approval, you will have to submit the following to the provider:
- Loan application form duly filled.
- Income documentation
- Credit history
- Assets
- Debts
After you submit the above-mentioned things, the provider will decide how much money you take as a loan from them. Though it’s not mandatory to get this approval first, if you do so you will improve the chances of buying the house of your dreams.
Always think in advance
When you go hunting for a new home, always have a long-term objective in mind. Your goal may range from raising your family to working from the convenience of your home. Even if you don't have any such plans, for now, this might still help you prepare for the future and reduce your stress.
Don’t make the mistake of restricting your options as this could be the biggest house hunting mistake that you could ever make. Moreover, if you plan in advance, you will get an opportunity to grow in your new house and not be compelled to move into it.
Avoid going alone for house hunting
You should consider hiring a real estate agent to stand by you, while you go hunting for a new house. Though you may not need to pay a commission if you go house hunting alone, this can even prevent you from finding a house of your choice.
Here are a few benefits of hiring a real estate agent:
- A real estate agent can be your best friend in the local housing market.
- Since a real estate agent will have immediate access to the housing market, they will offer you a broad range of available listings.
- A real estate agent can also provide you with some valuable suggestions and help you narrow your search.
In a nutshell, if your real estate agent is good, they will have a core understanding and insights about your local area. Also, they will not give you a sales pitch, but their suggestions would be objective.
Don’t keep a closed mind
Ensure you have an open mind while searching for a new house, otherwise, you can end up making the wrong choice. Don't be too selective as this would affect your chances of finding a good house. If you are too much into nitpicking each detail, perhaps you need to change your mind.
Never compromise on a part of the house that you find important. We recommend you keep an open eye on the areas which you can change according to your preference. For example, you can add a new cabinet or even add a new coat of paint.
Avoid rushing into an open house
You shouldn’t explore a new house in a hurry as this might not let you get the true feeling of the house. Give yourself sufficient time and investigate every nook and corner of the house, including its pantry as well as a closet. We recommend you check the lights and switches during an open house to avoid any issues in the future.
Don’t ignore the neighborhood
- Ensure to check the neighborhood during the hunting process.
- Make sure you feel safe in the chosen neighborhood.
- You need to do your research well before you opt for an open house.
- Consider checking if a neighborhood is suitable for families or singles.
- You can check the area where the kids would play and if the cars speed up on that road or not.
- Look for the amenities that seem important to you, like a local store, park, or gym. You need to check if that neighborhood has access to public transportation or freeways.
Never rush with an offer
Don't be too fast in extending or accepting an offer as you might end up taking the wrong decision. You can visit a house at different times of the day to check if the neighborhood is safe or not.
Don’t offer a big amount
If you offer a large amount initially, later you will face a lot of issues. Moreover, the bank will not grant you a loan until the seller reduces the price of the deal. Unfortunately, you will need to pay from your pocket, if you can’t manage the large amount for which you might have bid. If the market condition worsens in the future, you won’t be able to sell your house for that huge amount.
Avoid looking for too many opinions
Buying a new home is your personal choice. We recommend you not give too much importance to others' opinions as you would be living in it and paying for it.
Fall in love with the house and not its décor
You may get butterflies in your stomach as soon as you enter a house at the time of house hunting. But were you attracted to the décor of the house, or did you love the house as a whole? This is what you need to think about seriously.
You need to envision yourself in a house and fall in love with it. There isn't any point if you are attracted to the way in which the house has been staged for it.
Don’t take too long to decide
Of course, you need to take a careful decision, but avoid taking too long. You should avoid dragging the process as some other party may crack the deal and you will have to go house hunting again.
You will have to spend a lot of time, money, and effort to purchase a new home. It won't be very difficult for you to find a good house if you are using the right realtor. Simply, you need to create a master plan regarding the finance as well as the kind of home you want. This will make your experience both rewarding and exciting.
We recommend you be realistic and take your time to make a decision. You should avoid acting on your impulse and finally buy a house that would be ideal for you both for your finances as well as your emotions.