I’m worried about making the wrong decision.
This is a totally normal feeling when you’re making a decision as big as this. It indicates we haven’t reviewed the process enough. When this feeling shows up we need to talk more and discover the actual concerns.
What if I can’t afford the monthly mortgage payments?
A lender will pre-approve you for a mortgage that aligns with your financial capabilities. Stick to a budget and avoid overextending yourself. If you are approved for an amount that is higher than what you wish to spend that is ok, you are not obligated to use the entire approval amount.
I’m concerned about hidden defects in the home.
I am too! That’s why we will always get a thorough home inspection to reveal any significant issues. At that point we can ask for the seller to repair them, credit us for them, or cancel the purchase entirely if they’re too large.
What if the appraisal comes in lower than the purchase price?
While this rarely happens because we do tons of research before writing an offer, it is also possible. If the appraisal is lower, we can negotiate with the seller to reduce the price, pay the difference out of pocket, or terminate the contract with the appraisal contingency. You have options and are not locked in.
I’m afraid of getting locked into a mortgage with high-interest rates.
It’s important to know all your options with your lender and compare rates and terms. Locking in a rate can provide some protection against rate fluctuations. There are also numerous programs right now to lower your interest rate that I’ve outlined in this guide. You will not be surprised by your rate – you will know all details and your payment before writing a single offer
Will I be able to sell the house if my circumstances change?
Real estate markets can fluctuate, but historically property values have gone up 5% annually on average. If you choose a home in a desirable location, there’s a good chance you can sell it at a profit in the future. It just depends how long. If you plan to sell it a month after buying you most likely will lose money. Most real estate is not quick flipping like stocks, it’s a long term investment to build wealth and is the foundation of middle class wealth over the last 75 years.
I’m worried about potential neighborhood issues.
Location is the most important thing because it’s the only thing you cannot change. When we do our due diligence before even touring homes we will review the neighborhood thoroughly. I also encourage you on your own to tour the community and even walk it to experience.
What if I encounter legal issues with the property or title?
This will be handled during the due diligence. Escrow will run the preliminary title report to check if there are any legal issues against the property like liens. Title insurance is also essential to protect you against any unforeseen legal issues or disputes related to the property’s ownership.
Will I be able to afford ongoing maintenance and repairs?
Before touring a single home we will review all these numbers in detail so you know the actual monthly costs and any projected ones. This includes the monthly payment, HOA, taxes, insurance, and more.
I’m concerned about missing out on a better deal in the future.
It’s perfectly reasonable to keep thinking a better deal will show up but in my experience if the right property shows up matching your lifestyle and financial goals, it’s best to act on it. I’ve met many people who had a great opportunity in front of them only to wait for something better. Unfortunately they did not find something better and ended up settling for something not as good for more money. It’s also important to note this will unlikely be your last house so look at it as a stepping stone to another one.