How to Avoid Home Buyer’s Remorse
- 31 August, 2022
We’ve all experienced buyer’s remorse before. Maybe you bought a new gaming console or a trending product on social media that fell short of your expectations. But one thing you don’t want to experience buyer’s remorse over is a home.
A house is one of the biggest investments you’ll ever make in your lifetime. The good news is that home buyers’ remorse is 100% preventable. Here’s how to avoid it so that you can enjoy your purchase for years to come.
Set and stick to a budget
One of the biggest causes of home buyer’s remorse is overspending. Before you start looking at homes on the market, you need to be very clear on how much you can comfortably spend each month towards your mortgage payment.
As a rule of thumb, your mortgage should be less than 28% of your gross monthly income. Don’t put yourself in a position that makes you "house-poor" for the next 20 or 30 years.
Talk with a lender to get an idea of how big of a loan you can afford. There are many factors that lenders consider when approving you for a mortgage loan amount, including:
- Credit score
- Annual income
- Debt-to-income ratio
Be realistic about the condition of the home
Unless you’re buying new construction, you need to pay close attention to the condition of the home you’re interested in buying. Make sure you’re well aware of what changes need to be made to the house in order for it to live up to your expectations.
It’s not uncommon for a house to need a few fixes before or after purchasing it. What’s important is that you know what needs to be fixed, who will fix it, and any costs that you’ll incur. If you buy from a motivated seller, they may work with you and complete light renovations as part of the contract.
Make a list of wants and needs
When house hunting, have a solid list of things that you want and need. Maybe you prefer a home that has a new roof and windows. Or maybe you need a home that has a yard to accommodate your family and pets.
This makes it much easier to narrow down your options, as you can quickly weed out homes that don’t meet your needs or wants.
Location matters
Not only should a house have everything that you want, but its location also matters. Whether you want to move closer to work or closer to family, be mindful of the location of the home.
You don’t want to be stuck buying a beautiful home in a bad neighborhood, as this will impact your resale value in the future. Find a great home in a great neighborhood that makes you feel safe and welcome.
Work with an experienced real estate agent
While anyone can browse house listings online, you’ll want to help of a real estate agent when buying a home. Whether it’s your first home or one of several properties that you own, a real estate agent’s experience and expertise are priceless.
A real estate agent will not only help you find suitable properties, but they will also ensure that you’re getting a good price for the home. You don’t want to overbid and pay too much or underbid and risk landing the home. To avoid home buyer’s remorse, hire a trusted real estate agent in your area.
Happy house-hunting! But remember, the first step in buying a home (especially in today's economy and market) is to get pre-approved to take the guesswork out. Contact the Summit Funding branch location nearest you to start.
