In the first installment of this two-part series on homebuyer regrets, we talked about how recent homebuyers commonly said they would have wanted to save more money for their first home purchase, and that they would have liked to do more research on the mortgage process.
Here’s the other two most commonly things homebuyers said they would have like to do better, in hindsight.
Many homebuyers said they would have liked to understand the process of purchasing their home more clearly – a failure of the Realtor
Homebuyers tend to underestimate the complexity required to purchase a property. They can calm those nerves by working with a Realtor who is talented and experienced.
Our Realtors always start simple by asking what are your long term goals for your home? This will help yourself understand what type of home will fit those needs and wants. A good starting point is to study the selling prices of similar homes in the area you are interested in.
Next, consider what style of home that best suits your needs and wants. There are many options, from a residential single-family home, to a townhouse community, or a condo. Each type of property have pluses and negatives to consider. It may help to try and imagine what types of features you’d like your home to have. Although this sounds like a no brainer, it is often easier said than done. That’s because at some point, you’re going to have to make some trade-offs. It’s rare for a homebuyer to find every single need and want in the price range they can afford.
So, what do you care most about? Think about things like what neighborhood you want to be in, your lifestyle, and what square footage you think you might need.
A second area that homebuyers do not take into account during the early stages of the buying process is the cost of repairs and improvements to the home. Since you are planning on becoming the new owner of the home, these responsibilities become yours. A smart tip is to plan on storing away a little extra cushion of cash in case repairs need to be made or improvements are wanted. This is why it is important to use a reputable home inspector that will make you aware of any needed repairs before actually purchasing the home.
Homebuyers reported that they would have shopped around more for a mortgage
Shopping around for the right mortgage means using a reputable mortgage lender. A good start to this process is to ask your Realtor for a few referrals. A good Realtor will offer their client at least two to three names of mortgage brokers they have worked with in the past, based on your personality and your needs. Randomly choosing a name from a hat when shopping for a mortgage is to be avoided at all costs.
After obtaining a few reputable referrals, sit down with each of them and discuss your questions and concerns in as much detail as you would like. This process should not be rushed, it is a vital beginning step in the home-buying process that you will be committed to for a number of years. Also, the mortgage broker you ultimately choose to work with is incredibly important – you will be working with this person nearly every day from the start of the lending process to the closing table. Make sure your personalities “gel”.
Any other homebuyer regrets we missed? Let us know in the comments!