The home buying journey is exciting — but it also has a lot of moving parts that required careful planning and thought. Many homebuyers (especially first-time homebuyers) fall into making common mistakes that lead to disappointment and financial strain.

Let’s take a look at some of the most frequent mistakes we see people make in the home buying process. We’ll give you tips on how to avoid them, and have a successful home purchase. From talking to a mortgage lender before house hunting to understanding the true costs of homeownership, and from researching neighborhoods to not skipping the essentials, we believe knowing about these pitfalls will help you make informed decisions.

Whether you're a first-time buyer or a seasoned homeowner, our goal is to guide in a smoother and more successful experience purchasing a home.

GET PREAPPROVAL BEFORE SHOPPING

We know it’s tempting to just start looking at what’s available on the market. After all, you don’t want to paint yourself into a corner and keep all options open, right? Unfortunately, looking at homes before your talk to a mortgage lender is one of the biggest sources of disappointment if you find a home you love but can't get financing. We always recommend getting preapproved for a mortgage first. Not only does it hep you understand your budget and focus on homes you can afford, but it also shows sellers you are a serious buyer. And, if other buyer's are interested in the same home, the seller will often go with an offer from a pre-approved buyer. (The old “a bird in the hand is better than 2 in the bush” analogy.)

KNOWING YOUR MONTHLY COSTS

Another potential issue is not setting a clear monthly budget. Or, as Dave Ramsey likes to call it, “A Monthly Spending Plan”. Many buyers focus only on the purchase price. But there are a lot of other costs involved with home ownership. You need to factor in mortgage payments (that include interest), property taxes, insurance, maintenance, and other expenses. What will you do if you need to replace the roof, or the HVAC system or you have a major plumbing leak and all of your income is going to your mortgage payment each month?

Ask what the typical utility bills are. How much does it cost to heat and cool the home? What is the typical monthly water bill? What about trash service and pest control? Will you need to hire someone to maintain the yard or buy equipment to maintain it yourself? What about internet availability and cost? Even the cost of gas for your commute might need to be taken into consideration if you are moving further away from your job.

RESEARCH THE NEIGHBORHOOD

There is more to where you live than a house. But that is all that some buyers focus on, and they don’t consider the community. Do you have school age children? What are the local schools like? Are the neighbors friendly? Do the other homes in the neighborhood appear to be well maintained? How close is the nearest medical facility? Grocery store? Is there a local church you would want to attend? Does the community appear to be growing and improving, or declining?

Don’t Skip the Essentials

Skipping the home inspection or a survey is always a bad idea. Waiving these essential services in order to make your offer my competitive can cost you multiple thousands of dollars later. We could tell you some horror stories... including home additions that were built on the neighbor’s land. It is always worth the money to have a current survey and building inspection before you purchase a home — our Realtors insist on it!

Hand-in-hand with the home inspection and survey is the renovation /repair history of the home and any HOA rules. In the case of repairs or renovations, was the work performed by licensed contractors? If there is a homeowners association, are there any restrictions that might affect your plans for the property?

Don’t Make Emotional Decisions

We get it. Sometimes you just “fall in love” with a home. It’s easy to look at flaws and think you can live with them, or fix them later. It may be tempting to buy that “dream home” that is at the high end of your pre-approval, but outside of your realistic budget. I mean, you can tighten your belt, maybe take on a few more hours at work so you can swing the payments… But making decisions based on emotion rather than practicality can lead to buyer’s remorse later. You will be better off staying objective and sticking to your budget.

Think Ahead

Don’t just think about your current situation. Think ahead and consider how your needs might change. There’s certainly nothing wrong with starting small and trading up later. In fact, for many, that’s a great strategy! Just make sure you take the future into consideration. If you don’t have children, but plan to start a family in the next couple of years, how might that change your plans? Or maybe you have children now, but they are almost grown and you will soon be “empty-nesters”. How might that change your plans? A general rule of thumb in real estate is to buy a home you plan to live in for at least 5 years. That’s usually the length of time it takes to not lose money when you sell because of mortgage interest and closing costs.

Timing is Important

Waiting for the "perfect" home may keep you waiting forever! You can miss out on a lot of great opportunities in a competitive market by being too picky or waiting for a "perfect" property.

On the other hand, speed can sometimes cause problems as well! Moving too fast and not really understanding the process can lead to costly mistakes. You really don’t want to rush through the homebuying process. While there might not be a “perfect” home out there, there are probably several that are close enough that will check off the most important “must haves” on your list.

Working With a RealtoR

And we’re not just saying that because we are Realtors! An experienced Realtor or team of Realtors can provide you with invaluable guidance — especially if you are a first-time home buyer.

At Live Love Arkansas, we have dealt with the heartache of each and every one of these mistakes, and we can help you avoid making these or other mistakes that could cost you that home you really want, or from buyer’s remorse over a home you thought you wanted.

If you are looking to buy a home, contact us today and let us be your trusted guide on this exciting journey. (479) 747-2466.