3 General Financial Tips on Residential Real Estate

When it comes to buying a home, the numbers are generally the one aspect that gives the average homebuyer the most anxiety. A buyer must fully understand the financials on every stage of the homebuying process in order to make the best decision possible. Read on and discover just a few basic financial tips when it comes to residential real estate.

Do not disrupt your credit during the preapproval process

Until you have closed on the home loan you want to refrain from opening new credit accounts. The reason for this is because you do not want to risk making any significant changes that could affect the approval process. This means it is usually not in your best interest to open new credit cards during this time.

Do not put too much stock in Zestimates

While they can be helpful when narrowing down your home search, zestimates can be very inaccurate. Because of their wide margin for error, you do not ever want to trust any zestimate you come across online. Sometimes, zestimates are outdated or they do not account for all aspects of a home. Instead, put your trust in your real estate agent who knows the area. They will have access to comps and know whether a home if a listing is priced accurately. 

Always anticipate bidding wars

All too often homebuyers research homes that are atop their budget. While there is nothing wrong with doing so, it is important to understand that bidding wars are always a possibility. This is especially the case in a sellers market, meaning inventory is low. In many cases, a buyer is better off looking at homes that are below their budget to give themselves some wiggle room if there is competition.