Buyer Mistake #1: Do Not Look at Homes Before You Are Pre-Approved By a Lender
Save yourself time, frustration, and headache by meeting with a qualified loan officer before you begin the search for your new home. Knowing what dollar amount you qualify for will save you a lot of time and effort. Why look for homes that are out of your price range, or why settle for less than you can afford? Lenders use 5 main criteria to determine your eligibility for a mortgage and the funding amount of the mortgage:
* Down payment
* Credit record
* Employment status and history
* Value of property
Obtaining a pre-approval from the lender can also be used as a valuable negotiating tool once you make an offer on a home.
Buyer Mistake #2: Selecting Your Lender Based Solely on a Low Interest Rate
The lowest rates in town are not necessarily the best “deal” for you. Lenders sometimes offer attractive rates to attract applicants from their pool of current borrowers. Their hope is to keep these applicants, and then switch them to a program with different terms and rates. Rarely, do these situations save the borrower money. Angie Cole’s team works very closely with a number of reliable loan officers on a daily basis, and are involved with numerous transactions each year. This gives them the advantage of being able to recommend local lenders who will deal with you openly and honestly upfront.
Buyer Mistake #3: Choosing an Extensively Improved Home Surrounded By Lower Priced Homes
An extensively-improved home is one packed with amenities not found in other homes that are in the same neighborhood, and is priced higher than surrounding properties. It can be quite an advantage to own a moderately-priced home surrounded by more expensive homes. However, it is NOT such a good idea to own an expensive home surrounded by homes of lesser value, as this can actually reduce the value of your home.
Buyer Mistake #4: Purchasing a Home That Meets Only Immediate Needs
Many times buyers will underestimate the size of home they actually need, or may need in the future, and buy a home that’s too small. Often times, this decision is based on the fear of having to spend more money or of incurring a higher mortgage payment. Be careful to select a home that will still fit your needs in years to come.
Buyer Mistake #5: Failing To Investigate Property Taxes
Go beyond looking at the tax amount stated on the listing sheet or current tax bill. Call the county where the home is located and ask how often properties are reassessed. Also inquire about the average increase. If it’s been awhile since the last reassessment, you could incur a large increase once you are the owner. High taxes make properties unappealing for many reasons other than the large bite they take out of the monthly amount you can afford.
Buyer Mistake #6: Purchasing a Home Without a Professional, Experienced Buyer’s Specialist
Having a knowledgeable, experienced buyer’s specialist offers you many valuable services and assures that you always have someone looking out for your best interests. Your buyer’s specialist will assist you in the selection process by guiding you to homes that are best suited to your needs, budget, and dreams.
Buyer Mistake #7: Giving Your Name and Personal and Financial Information to the Agent at an Open House or New Home Sales Model
By doing this, you might inadvertently give up your right to have your own agent and compromise your negotiating power.
Buyer Mistake #8: Believing That You Cannot Negotiate Terms on New Construction
Most general brokerage agents are under this impression.
Buyer Mistake #9: Failing To Get All Repairs Done Prior To Closing
Once your home closes, you are responsible for all repairs needed. This can add up to thousands and thousands of dollars.
Buyer Mistake #10: Getting Directly Involved in the Negotiations by Working Directly with a For Sale by Owner Instead Of Using a Buyer’s Specialist
You are not saving money this way either. You will miss costly issues.