Wednesday, December 5, 2018 / by Mandee Sears
Recently, I had a conversation with some fellow REALTORS® about home buyer mistakes we have seen over and over again. It's funny, whether first time buyers or seasoned buying veterans, there are some mistakes we continue to see.
Let's take a look at the top 3 mistakes we came up with so you won't make them when you're ready to buy a home.
#1 Home Buyer Mistakes - Not Getting Pre-Approved for a Mortgage
Yes, sadly, this is all too common. A pre-approval is free (most of the time, check with your lender to verify. If not, change your lender!)
Getting pre-approved can help you avoid a lot of heartache during the entire process -- from shopping for homes to closing on your new home. Let me explain...
- If there are problems on your credit report, you'll find out about them during the pre-approval process. That way, you can clean them up before you make an offer on a home. This can save you from a potentially embarrassing situation.
- Some people jump in with both feet. They call their agent and start viewing homes right away. The price range of homes they are viewing doesn't always jibe with the price range. they can afford. It's awful to fall in love with a home only to find out you can't afford it. Pre-approval will let you know the price range you can afford.
- Home sellers take an offer more seriously when accompanied by a pre-approval letter. It means you have already been through the ringer with your lender and once you find the right home, the underwriting and official loan commitment is much easier.
Just a note -- a pre-qualification and a pre-approval are two very different things. A pre-qualification is an amount you are "likely" to be approved for when you make full application.
A pre-approval goes through the steps of checking your credit, verifying your income, looking at past tax returns, bank statements and more. It's the same/similar process used when you apply for a mortgage loan - you're just doing it before your start home shopping.
#2 Home Buyer Mistakes - Emotions vs Finances
First, make sure you are comfortable with the monthly mortgage payments. Then, consider the property taxes, maintenance, what the monthly overhead is for upkeep on the home (utilities, HOA's, etc...) and furnishing it.
It's easy to fall in love with a beautifully decorated home. But, can you afford the associated costs of maintaining the home? You have to look beyond the mortgage payment.
#3 Home Buyer Mistakes - Not Using a Buyer's Agent
A Buyer's Agent has had lots of clients, just like you. They are familiar with the local market and can help guide you through the often confusing process of buying a home.
From access to the most up-to-date homes for sale, to previewing listings so as not to waste your time on a home that doesn't fit your criteria. The Buyer's Agent helps alleviate stress and saves your valuable time.
Inspections, appraisals & title, OH MY! Those are just a few of the items a Buyer's Agent will help you deal with once you decide to make an offer . In addition, there is the market analysis, negotiating, spotting potential problems with the home and a lot more. This is where a good Buyer's Agent has your back -- we keep your best interests at heart, always.
As a home buyer navigating the waters of the real estate market, you need someone in your corner. Your agent has an ethical and legal obligation to you. Use their expertise to get the best home for the best price.
The Real Estate Pros Team
Our team has awesome Buyer's Agents: Kenneth, Jeff, Allie, Jeremy & Braxton will help you find your dream home. Call us today at 317-572-5589.
We're always in your corner!