It’s normal to romanticize buying a house. It’s one of the biggest things you do in life, and you may have dreamed of the time when you could become a homeowner. While there’s a lot to be said for the upsides of purchasing a home, that doesn’t mean it’s not a tough process.
Particularly in the current market, buying a house can be frustrating and demoralizing.
Sometimes, knowing to prepare yourself for letdowns and challenges can help you make a smarter decision overall.
According to homebuyers, the following are the worst parts of the process with that in mind.
Dealing with High Prices
Home prices are at historic highs right now. Certain markets are more affected than others, but almost across the board, this is true.
There are many reasons for the high prices, from inflation and supply chain issues to low inventory.
It’s tough because what someone could have afforded in the market that existed just a few years ago isn’t today’s reality.
In line with the high prices buyers are facing universally right now, you have to make sure that you’re not overbuying. What happens to many people when they buy a home, particularly if it’s their first time, is that they let emotion take over.
You might have gone into the process with a clear budget, determined to stick with it.
Then, you get into the heated, competitive marketplace and fall in love with a home out of your budget.
You might develop an emotional attachment to that home, and you could spend either more than you can afford or more than it’s worth.
Keeping your emotions in check is one of the most difficult parts of buying a home for a lot of people.
You have to remind yourself repeatedly to stick with the facts rather than emotions.
Being in a Bidding War
Bidding wars are everywhere right now, as you might realize. Some people put in a full-ask, all-cash offer for a home and are promptly outbid. It’s such a competitive marketplace, and the emotional component can again come into play.
If you’re part of a bidding war, it’s easier to get caught up in what’s going on at the moment and pay more than you should. You might theoretically be the winner, but you could be the loser because you’re paying more than the house is worth.
There can be significant financial consequences of overpaying for a property, no matter what the market is like right now. Mortgage lenders only give loans based on the property’s actual value, not what you want to pay. Even if you bid the price up, that doesn’t mean that’s the loan you’re getting.
At the same time, if you keep getting outbid, it can also make you feel frustrated and like you’re never going to find a home. Plus, if you’re renting, you’re continuing to put money toward that.
The paperwork that comes with getting a mortgage and buying a home is challenging.
Just how complex and burdensome the paperwork is can vary depending on the type of loan you’re trying to get and your financial situation.
If you’re self-employed, you’re probably going to find the loan process is the worst part of buying a house. You have to show years of bank statements and tax returns.
As you wait to finalize your loan, you might feel anxious about everything. Your loan might not even be finalized until a few days before closing, and there’s uncertainty as you feel like you’re in limbo.
While there are certainly downsides that come with buying a house, the reward will be worth the sacrifice if you take your time and make a good financial choice.