Buying a home is the single biggest financial choice in most people’s lives. There are many factors that go into this decision, including formulating a budget, determining which neighborhood is best, schools, traffic, proximity to work, shopping, and the list goes on.
Many buyers, whether first-time or veteran home buyers take the necessary steps to ensure they are making the right choices for their family. Unfortunately, others make numerous mistakes, costing themselves time and money, while losing out on homes they would have liked to purchase. Below are four mistakes buyers make when purchasing a home.
- Looking for homes before getting pre-approved by a mortgage lender.
It’s amazing how many buyers start looking for homes without knowing their purchasing power. They have no idea how much money they need, their credit standing, nor the monthly payments they can afford. Obtaining a pre-approval form a mortgage lender has to any buyer’s first step in the home buying process. The pre-approval along with the buyers own budget will allow them to determine their price range leading them to pick out the locations and type of property they’ll be able to purchase.
- Making offers on homes without doing their homework.
So you know your budget and with the help of a Real Estate professional you can find the right neighborhood for you and your family. At this point your Real Estate professional should show you all of the properties which recently sold. You can drive by these properties to get an idea of the condition of those properties so you can compare them the listings for sale. This will allow you to formulate an informed offer. Too many times buyers get excited about a house, don’t do any research and end up over paying for it. Even worse, many buyers make “low ball” offers that they end up renting forever. Find a Real Estate professional that will help you do your homework before making offers.
- Not realizing the value is in the location, size, and layout.
We all know the three most important things that determine the value of Real Estate is location, location, location. We can add that within a location is the size of the property and the layout. Many home buyers get caught up in the landscaping and décor of a home and end up over paying because of it. Most buyers are better off finding properties for less money that need some updating and/or a little TLC, allowing them to turn that property into their home.
- Not paying attention to the important dates on the Sales Contract.
There are a number of steps the buyer must go through in the home buying process, including applying for financing, having the property inspected, obtaining a loan commitment, and of course closing. The sales contract dictates when these steps must be completed. The buyer may risk allowing the seller to cancel the contract if those steps are not completed by the dates set in the contact. Worse yet, the buyer may risk losing their earnest money deposit if they don’t complete certain steps by the dates set in the contract. Buyers should review these dates with their Real Estate professional prior to making offers to ensure they can meet these dates. Too many buyers have no idea these dates even exist and some of them lose properties and money because they didn’t act or acted too late. Pay attention to the important dates in the Sales Contract.
Purchasing a home is the single biggest financial decision in most of our lives. There are a number of steps buyers need to take before and during this process. Those buyers who do their homework and prepare themselves find a lot less frustrations and save money. An experienced Real Estate professional and Mortgage Originator can be valuable assets who can guide you through this process.