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5 Common Home Buying Mistakes

When making the leap into what is the typically the biggest financial decision people ever make, buying a home is exciting, and also distressing.    There is a lot of room for error, so play it smart rather than making mistakes that could cost thousands of dollars.

  1. Shopping for a home without an experienced agent

Everyone looks at homes for sale online, out of curiosity as well as to gather a sense of what is available and at price look like. But if you’re serious about buying a home, you need an experienced advocate looking out for your best interests. Your agent will expertly navigate every step of the home-buying process beside you, including finding the best property, writing a winning offer, negotiating inspection repairs and cruising through to closing.

  1. Evaluate mortgage options

It’s necessary to get pre-approved for a home loan before you begin earnestly searching for a house You can’t know that you are getting the best deal unless you can compare offers. However, applying with too many lenders can lower your credit score and can generate unwanted calls and solicitations. Contact two or three lenders and compare rates and closing cost to determine the best one for you

  1. Don’t hold out for your “dream home”

Frankly, the perfect home, (perfect location, size, condition, features and price), may not exist. Create a list of “musts” and “wants” to identify criteria for your Realtor, but don’t insist on checking everything on the list. Limited inventory means some compromises might be necessary in order for buyers to find their home.

  1. Don’t make lowball offers

Of course, you want the best deal, but don’t miss out on the right home with a foolishly low offer. A survey from Inman found that 15 percent of real estate agents say the third-largest mistake people make when buying a home is offering too little for a property (behind not talking to a lender first and taking too long to make an offer). If your offer offends the seller, they may not even consider making a counteroffer.

  1. Don’t make any big purchases before you close

You found a great house, the seller accepted your offer, but until the loan is closed it still must go through underwriting. Underwriters will look at your credit to make certain nothing has changed since the pre-approval. If you’ve established any new debt since then, such as a new car or you’ve maxed out your credit cards, your credit score will be impacted which could raise your interest rate or, possibly result in a rejection of your mortgage application.

Your best bet is to trust your Realtor to help you make informed and accurate decisions throughout the home buying process. The Platinum Group Realtors have the experience, knowledge, and resources to help ensure your experience is as stress-free and relaxing as possible. Need a complimentary Platinum opinion about your home? Call today: 719-955-8578.

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