The 12 Most Common Mistakes New Home Buyers Make (part one)

…..and how to avoid them

“It’s much easier to cross a mine field when you know where
the mines are. By knowing the common mistakes that most
people make when buying a home you can save yourself time,
money and a great deal of frustration.”

For most people buying a home is the largest investment they
will ever make. Unfortunately many homebuyers go into the
process without learning about the process. This often leads
the purchase being more expensive and more difficult than it
needs to be. By learning from other people’s experience you
can avoid…

• paying too much for the home you want, or

• losing the opportunity to own your dream home or,

• buying a home with lots of problems or,

• (worse) buying the wrong home .

A systematic approach to the home-buying process can help you steer clear of these common mistakes, allowing you to not only cut costs and save time, but also make the process a more pleasant experience.

12 Home Buyer Mistakes

This important report discusses the 12 most common and costly. Home buyer mistakes and what you can do to avoid them:

1. Not Checking Out Each Area Thoroughly

If you are planning on buying a house in an area that you have lived in for a long time this may not be an issue. But if you are new to the area it will be well worth your while to ask people you trust about the different areas you are interested in. When you narrow it down to two or three choices, walk the neighborhoods, talk with people you meet, visit community organizations, schools, places of worship, etc. and make sure this is area you will be comfortable in.

2. Not Verifying Value’s

What price should you offer when you make an offer on a home? Is the seller asking too much or is this a bargain you should jump on? You will never know for sure until you research the market and look at what comparable homes have recently sold for in that particular neighborhood. This is something your real estate agent can help with. By accessing the local multiple listing service an agent can provide a list of all the homes that have sold in a prescribed area. Ask your agent to provide a list of all the homes that have sold within the last three to six months that are the same type of home that you are interested in and close to the same size and age (or at least condition) along with the final selling price of the property (including any known seller concessions).

If you will take the time to drive by these properties you will quickly get a feel for values in the area and be better equipped to make a reasonable offer for the property. If you don’t have a real estate agent we would be happy to refer you to one.

Mortgage Marketing Secrets

3. Not Getting Pre-Approved For a Loan First

This is where most people get the cart before the horse. They get excited about buying a home and start looking around. Before you know it they have hooked up with a real estate agent and are considering different properties. Then they finally ask the question:

Can we afford this? Unfortunately the answer is often no and they have to start all over again. And, of course, when they start looking at lower priced homes their enthusiasm is dampened because they hadtheir hearts set on the nicer homes. Getting pre-approval not only helps you know what you can afford but it puts you in a stronger negotiating position as well. When the seller and their agent know that your loan is done and just waiting for you to find a property they will be much more interested in your offer and will give your offer more weight against competing offers.

Getting pre-approved is fast, easy and normally free. Most mortgage professionals can obtain written pre-approval for you at no cost and no obligation, and it can all be done quite easily over-the-phone. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a completed credit application, and a certificate from the lender which guarantees you a mortgage up to a specific level when you find the home you’re looking for. Make sure you are dealing with a professional who specializes in residential mortgages. The mortgage industry is extremely complicated with literally hundreds of options and choices.

Using an expert can make the difference between getting into the home of your choice or having to rent forever.

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