What To Do If You Lose Out On Your Dream Home
Deciding to buy a home can be one of the biggest financial decisions you ever make. The process of looking at countless houses can be draining. Naturally, when you find a home that you love and can see yourself living in, it's an exciting feeling. However, even though you may do everything you can to secure it, sometimes a house falls through. Though it can be heartbreaking, there are things you can do to handle losing your dream home, from getting right back out in the market to accepting and grieving the loss.
Some of the most common reasons for not getting the house you want are mortgage financing falling through, title issues, or even a home inspection unveiling significant structural damage. But sometimes, it can be as simple and heartbreaking as the seller just deciding they don't want to sell it anymore. Some things you can plan for, like securing the mortgage — other things, such as the seller's emotional attachment to the house, are simply out of your hands. The main thing to do when your dream house falls through is to accept what has happened. In time, you may come to see that you can find another home that will fit your needs, but in the meantime, allow yourself to feel your emotions.
Remember -- it's business, not personal
Once you feel ready to resume the house search again, look at the next house venture as a business deal because that is just what it is. It's time to get strategic and look at practical plans to prevent this from happening again. If you were simply outbid, it's time to reevaluate why it happened and what can keep you in the game next time around.
First, identify whether you offered a reasonable initial bid. A bid that is too low can offend a seller which may make it more difficult to seal the deal. However, if your bid was reasonable and you just didn't have the money to increase your offer any further beyond your initial amount, you may have to fine tune your buying range. Looking at lower-priced homes gives you the chance to raise your bid without exceeding your budget. It gives you the ability to negotiate better because you know you have room to increase your bid if you choose.
Set strategic plans
If you were denied a mortgage in the amount requested, one thing you need to know about getting a mortgage is that it is possible to be denied for approval even if you were pre-approved. Factors like large purchases — buying a new car or racking up debt on your current credit cards — can be damaging before final approval comes in and can thwart your application and buying power. It's vital to find out exactly what contributed to the lost deal on your end.
Being realistic about what you can comfortably afford and what you need will supply you with more options. Now is also a good time to reevaluate your must-haves. You may not need the third bedroom and can get away with two. You may realize the attached garage isn't a deal breaker because you can be happy with a carport. The most important thing is to identify what financial missteps can be corrected while broadening your possibilities so you can go into your next venture a little more educated and experienced, knowing your new home is still out there.