Buyers encounter challenges in any market, and today’s environment is no exception. With rising mortgage rates, increasing prices, and a limited supply of homes, there’s much to think about.

However, one reliable solution is to seek advice from a real estate agent, whose expert guidance can help avoid common mistakes homebuyers are making today.

Delaying Pre-approval
During the homebuying process, a lender will examine your financial situation to determine the mortgage amount they are willing to offer. This pre-approval provides clarity on your borrowing capacity and helps you understand the financial aspect before house hunting begins. Even though looking at homes can be more exciting, it should not precede financial discussions. Ensure you obtain your pre-approval early. As CNET states:

“If you wait until the last minute for pre-approval, you might rush to contact a lender and miss out on a home bidding opportunity.”

Waiting for the Perfect Home
Having a comprehensive list of must-haves and nice-to-haves is fine, but you must stay realistic in your home search. While aiming for a home that checks every box is ideal, compromises may be necessary, especially given the low inventory. Additionally, a home meeting all your desires might be too expensive. Investopedia notes:

“When you hold out for the perfect home, you might prolong the homebuying process or end up paying more just because it meets all your needs.”

Instead, target homes that fulfill most of your essential requirements and have potential for future improvements.

Overspending on a Home
Given today’s mortgage rates and home prices, buying a home can be expensive. Though it may be tempting to stretch your budget, you should avoid exceeding what you can comfortably afford. Discuss with your agent how fluctuating mortgage rates affect your monthly payments. Bankrate advises:

“Focus on the monthly payment you can afford rather than the maximum loan amount you qualify for. Qualifying for a $300,000 loan doesn’t mean you can comfortably handle the monthly payments along with your other financial commitments. Each borrower’s situation is different, so consider your entire financial profile when determining how much house you can afford.”

Not Utilizing a Local Real Estate Agent
This might be the most crucial point. Buying a home involves multiple steps, paperwork, negotiation, and more. Rather than managing everything independently, it’s wise to have a professional by your side. The right agent can alleviate stress and ensure a smooth process. As CNET explains:

“Purchasing a home without a real estate agent makes the process more difficult than necessary. An agent provides professional legal guidance, market knowledge, and support, which saves you time, money, and stress. They also boost your chances of finding the right home, eliminating hours of internet searching for listings.”