Buying a new home is one of the biggest decisions you can make in your life. Because of its impact, it can be very emotional. Sometimes, it can distract you and get the best of you. If you let it take over you, then you might commit the common mistakes homebuyers do. Keep your emotions in check, and make sure to make the most rational decision when buying a new home. Below are some common mistakes other people make when they buy a new Jackson Hole real estate home.
4 Common Mistakes When Buying a New Jackson Hole Real Estate Home
- They take on too much. This is what happens when they think they found their dream home, but it’s outside their budget. What they do is they try to stretch that budget and then take out a bigger mortgage. This is a very disastrous decision. If you take on more debt than you can afford, it will leave you in a situation where you’ll struggle to pay for the utilities. And then, you’ll end up zapping other financial goals. What you should do is to limit the costs of your house payment to 25% of your take-home pay.
- They do it alone. It helps if you go with an experienced Jackson Hole real estate agent to help you determine what’s a reasonable price for the home you’re considering. Together, you can negotiate the best price for the new home. This benefits you because the seller is the one who pays the agent’s commission. You get the agent’s expertise without having to pay for anything.
- They skip the pre-approval. It’s not a good idea to skip the pre-approval because it means you’re not getting the guidelines for what you can afford realistically. Many homebuyers skip this step, and that’s why they tend to take on too much. Never skip this step, as this will give you the financial advantage when you negotiate for a new home. Sellers like working with buyers who can afford the home, so make sure you get pre-approved first before you start looking around.
- They skimp on the down payment. Did you know that if you pay more money upfront, then you’ll pay less interest over time? So, if you save at least 20% for a down payment, you can also avoid paying the PMI. PMI is a fee that covers the insurance to protect lenders when a buyer has little equity. And while you’re at it, make sure you include the moving expenses and closing costs.
These are what many homebuyers do when they shop for a new home. To make sure your purchase won’t be a failure, we have come up with a few tips to help you buy a new Jackson Hole real estate home.
Tips When Buying a New Jackson Hole Real Estate Home
- Do your research ahead of time. Check out some newspapers, magazines, and websites with real estate listings. Write down all the homes you’re considering buying, and monitor how long they stay in the market. Once you have that list, try to check any changes in their pricing. This will help you identify the housing trends in Jackson.
- Determine how much you can afford. Taking on too much is never a good idea when it comes to buying a home. Make sure to look for a home that doesn’t cost more than 3 to 5 times your annual household income. You don’t want to end up with huge amounts of debt just because your home is more than you can afford.
- Find a real estate agent. Real estate agents are one of the most valuable partners when buying a home. They can provide you with helpful insights with neighborhoods and homes that nobody else knows. You might find their knowledge in buying homes, skills with the negotiation process, and familiarity with the area you’ll be living in very useful. Most importantly, As we discussed earlier, finding an agent is free. The seller of the house pays for the agent’s commission.
- Make an offer. Tour some homes in your price range. It might help you if you take notes on all the homes you visit. You’ll be checking different houses, so the notes will help you remember what you like about the place. You may also take photos or videos of the home.
It’s okay if you take your time evaluating the home and the neighborhood. You want to make sure you won’t regret your decision after staying for 1 week. Once you have decided, coordinate with your real estate agent to negotiate a fair offer based on how you’ve evaluated the place. The moment you and the seller have agreed on a price, the house will go into escrow to complete all the steps in the home buying process.
- Get the home inspected. You need to make sure your new home is in perfect condition, so check for signs of structural damage or anything that needs fixing. The real estate agent can help you get this done a few days before the seller accepts your offer. Doing an inspection will let you and the seller know if anything needs fixing. Once you get the results, you can decide whether or not the seller should fix them before closing the sale.
- Get the home appraised. Lenders usually arrange an independent estimate of the value of the home you want to purchase. The appraiser can be a member of a third-party company and isn’t directly associated with the lender. The good thing about getting your home appraised is that it will let both parties know that you’re paying a fair price for the home.
- Close the sale. During the closing, you’ll need to sign all the paperwork to complete the purchase, and this includes your loan documents. It should take a couple of days before your loan gets funded after the paperwork returns to the lender. Once the seller receives the check, you can already move to your new Jackson Hole real estate home.