Shopping for a home can be a complicated process, but sometimes buyers can make it even more complicated than it needs to be. Avoid these bad homebuyer habits to stay on track and ensure a smooth and successful transaction.

Not getting pre-approved

The idea of buying your first home is exciting, and after scouring real estate websites you probably have a list of possible options to explore. However, Tim Poxson, REALTOR® with Century 21 Looking Glass said you can waste a lot of time -- both yours and and your agent’s -- and face potential disappointment if you skip the pre-approval process.

“Before you even start your search you should speak with a local mortgage lender,” he said. “If you don’t get a pre-approval or pre-qualification letter, you won’t have a good idea of what you can afford, and you could very well be touring homes that are out of your price range.”

 

Making low-ball offers

Many local REALTORS® agree that today, buyers’ mentality needs to catch up with the market reality. Just a few years ago homebuyers were able to snag some great deals, but today, it’s definitely a fast-paced sellers market. Inventory is low and available homes are going fast, sometimes within just a few days. If you find a home you love, you need to jump on it and come in with a strong offer.

 

Having unrealistic expectations

Today’s real estate and home improvement shows can give us a glimpse inside some amazing houses and provide great inspiration. However, it’s important to keep your expectations in line with your budget and the local market. While a 60-minute show can make these transformations look easy, it takes a lot of time and money to get the end result. There may not always be extra money for renovations, and even if there is money, a lot of buyers don’t have the time, skills or tools to take on a big project.

On the other hand, while you may not be able to tackle a huge renovation, a few projects here and there may be doable. If you have found a great home in a perfect location, don’t get hung up on minor cosmetic updates.

 

Poor communication skills

Today it’s all about texting, but be sure you have a conversation with your REALTOR® to make sure they are ok with communicating that way. A home is one of the biggest investments you will ever make, so when it comes to critical issues, forgo the text and give your agent a call.

 

Spending Money After the Offer

Once you find that perfect home and make an offer, you may think you are home free, but things can still go south. It’s important to remember that even if you are pre-approved and have an accepted offer, it’s not a guarantee you will successfully obtain financing. There are some cases where a buyer can be denied after a pre-approval due to things like a negative credit hit, an increase in debt, or a change in employment or income.

“I once had a buyer that purchased a new car after he submitted an offer, but before his transaction officially closed,” said Poxson. “Fortunately, in his case, he was able to still secure financing and things worked out, but that does not always happen. I always tell my clients to maintain the status quo until closing day.”

Should you run into an issue that may affect your loan, be sure to call your mortgage advisor right away. He/she can walk you through your options and help you make the best decision.

 

If you are getting ready to buy a home, the best way to avoid these bad habits is to enlist the help of local professionals. Visit the Greater Lansing Association of REALTORS® website at www.lansing-realestate.com for a listing of area REALTORS® and lenders who can help guide you through the home buying process.