The Seven Most Common Mistakes Buyers Make And How You Can Avoid Them
For most people purchasing a home is a very exciting experience. Unfortunately, for many it also ends up being frustrating and unnecessarily expensive. We have heard too many stories from people who had a bad experience buying their first home, something they could have easily avoided by being better prepared for their first real estate transaction. We don’t want anyone to make these mistakes, so as Realtors we work hard for our clients to ensure that their real estate transactions go smoothly. For those who are not our clients yet, we prepared this special report that outlines the seven most common and most expensive mistakes buyers make. We hope you will enjoy it and find it useful.
1. Not Getting Pre-Approved First
The very first step towards buying a home should be getting pre-approved for the loan. This is an absolute must if you want to avoid major disappointments later. Getting pre-approved is often easier than people think. First you shop around and find a lender that you feel comfortable working with. Your Realtor should be able to recommend a few. Once you decide on one, you should meet with your lender and discuss your purchase needs. You will fill-out a loan application, and your lender will check your credit, verify your income and employment, and determine what kind of loan you can qualify for. You will then know (1.) how much you will be able to borrow, (2.) how much you will need for the down payment, and (3.) how much your monthly payments are likely to be. Looking for your next home then becomes easier since you will know that (a.) you can get financing, and (b.) what price range to consider. The lender will also give you an important negotiating tool – a pre-approval letter. This document will confirm to sellers that you can obtain financing, and will give you a negotiating advantage over buyers who do not have it.
