4 Reasons to Keep Your Emotions in Check During the Home-Buying Process

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

As you look at homes for sale, try not to let your emotions cloud your thinking. Find out how doing so could cost you money when buying a home. 

The home-buying process can be exciting. As you tour potential homes, you’ll imagine what life would look like if you lived in each space. But be careful not to get too attached when considering properties. If you’re not cautious, your emotions may cloud your decision making. Buying the wrong home could be an expensive mistake. Here are a few reasons to keep your emotions in check as you look for an ideal home to call yours.

1. Your offer may get declined

You’ll need to put in an offer once you find a home you want to buy. There will likely be other home buyers who dream of owning the same house. That means there is potential for multiple offers to come in, and someone else’s offer may be more attractive to the owners and therefore get accepted. If your offer is declined, it could be especially crushing if you’ve become too emotionally invested in the home. You can prepare yourself for potential rejection by reminding yourself that there are plenty of other homes to consider if your offer is rejected.

2. You might ignore your ‘must-haves’

Since many of us spend a lot of our free time at home, choosing a home that will meet your needs is essential. Before you start looking, it’s best to determine your must-haves. You should also determine which home and neighborhood elements you want to avoid so you know when to walk away from a potential home if it’s not the right fit.

Throughout the home-buying process, it can be easy to let your emotions get in the way. If you’re not cautious, you may settle for a home that doesn’t fully meet your needs out of fear that you won’t find the right one. The last thing you want to happen is you spend a lot of money only to realize it wasn’t the right home for you.

3. You might overlook costly issues

No home is perfect, but some properties have significant problems. If there are concerns with a property you like, it’s essential to consider whether it makes sense to take on the responsibilities that come with the property. Some home issues are expensive, and having to take care of repairs soon after becoming a homeowner could negatively impact your personal finances.

It’s also worth noting that some problems might not arise until you have a thorough home inspection. As you tour properties, consider how any issues will impact your life, including your finances. You don’t want to drain your checking account taking care of expensive repairs.

4. You could end up house poor

As you look for a home, keep your budget in mind. If you visit a home that you quickly become attached to, you may feel pressure to bid above your spending limit in hopes of beating out competing buyers. If you bid more than you can afford, you could end up house poor. This means your house is eating up more of your income than is comfortable for your finances.

Keep in mind you’ll only be able to take out a mortgage for the appraised value of the home. If you overbid beyond what the home is worth, you’ll need to cover the difference in cash. If you only have enough money in your savings account to cover closing costs and a down payment, you’ll find yourself in a stressful financial situation.

It’s also worth noting that mortgage lenders may approve you for a loan that you can afford based on your income. However, the loan amount may be more than you’re truly able to afford if you’re putting a large portion of your income toward other financial goals, like saving for retirement. That’s why it’s important to review your finances and be realistic about your budget.

You can avoid ending up house poor by being clear about your budget from the beginning. If you’re unsure, this guide can help you determine how much house you can afford. No matter how far you are in your home search, don’t feel pressure to overspend.

Think through this life-changing choice

Buying a home is a big deal, and it’s a decision that will impact many areas of your life. Make sure you think through your choices during the home-buying process. You can avoid disappointment and regret by keeping your emotions in check. If you’re ready to apply for a home loan, check out our list of the best mortgage lenders to learn more.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More