You and your family might be excited about buying a new home, but hunting for it can evoke a different emotion. The longer you look at homes for sale, the less excited you can start to feel about the purchase. To end the hunt, you could wind up settling for a home that is not what you were looking for. To prevent this, your hunt needs to be practically perfect. If you avoid the following mistakes, it will be.
Mistaking Pre-Qualification for Pre-Approval
A pre-approval is a big deal when it comes to buying a home. Sellers know that you are serious about buying because they know you have taken the preliminary steps to start the process. The pre-approval lets you know exactly what your lender is willing to loan you for a home.
By contrast, a pre-qualification just states that you might be able to afford a home. Unlike a pre-approval that requires a close look at your finances by a lender, the pre-qualification is based on very basic information. There is no guarantee that you can receive an actual approval.
Before starting your hunt, get pre-approved. Getting pre-qualified is fine, but you will get further in the home buying process if you have a pre-approval instead.
Focusing on One Neighborhood
Location is important when you are buying a home. Knowing this, you probably have a neighborhood in mind that you want to live in. Although it is normal to want to live in a certain area, fixating on it could hurt your house hunt.
Chances are, if you are fixating on a neighborhood because it is a good one, others are, too. Finding a home there could prove to be difficult. If you do find a home there that you like, you could possibly find yourself in a bidding war that ends up stretching your budget.
Instead of limiting your house hunt to just one neighborhood, research some others for your search area. The more options you have, the more likely it is that you find a home in a reasonable timeframe.
Your real estate agent can be one of the most important resources you have to help you find a home. He or she can limit his or her showings to homes that fit your criteria. Between avoiding these house hunting mistakes and working with your realtor, your house hunt will be over sooner than you might have expected.