1. Using the wrong real estate agent.
Look for someone who does real estate full time, knows local inventory and is tech savvy. Real estate, especially that in Honolulu, moves very quickly because of the lack of inventory. Because of this, you’ll want a real estate agent that is quick to answer texts, calls and emails and knows how to use technology to get your offer in right away.
2. Shopping before getting approved.
Find out how much mortgage you qualify for and get an approval letter from your lender. You don’t want to be looking at homes to later find out you can’t afford them. Most real estate agents now will be hesitant to show clients homes if they haven’t yet been approved because of this.
3. Maxing out your spending power.
It’s a wise decision to be a little conservative when it comes to purchasing a home. Homeowners have expenses such as property taxes, condo fees and maintenance that renters looking to buy fail to take into consideration.
4. Skipping the inspection.
You’re spending hundreds of thousands of dollars. You should know exactly what you are buying. Many lenders require the inspection before they approve the loan.
5. Overdoing contingencies.
Putting too many inspection-related contingencies can scare off the seller. Talk to your agent before submitting the offer so you’ll feel confident your interests are protected.
6. Getting too attached to one property.
Throughout the home buying process, buyers should be able to fall in and out of love with properties. Just because you weren’t able to get the home you had your heart set on doesn’t mean there isn’t another one out there that will perfectly fit your needs and wants.
7. Buying a home if you plan to move again soon.
You don’t want to buy property and automatically assume you’ll be able to rent it out or sell it when you leave. If you have to move soon after buying, you could be putting yourself in financial trouble, paying mortgage payments on a place you no longer live in.