8 Common Buyer Mistakes - Our Tips to Home Buyers

So you are ready to buy a home! Whether this is your first home purchase or third, each experience is different and can present different trials and victories. There are multiple items to consider when purchasing a home, and lots of moving parts to keep your transaction on track. 

Below we have listed 8 common buyer mistakes, that cover everything to pre-buying and things that can come up throughout a transaction. Our team goal is always to provide tips and information, so that potential buyers have the skills and tools they need to be knowledgeable and prepared for the home buying process. 

1. Not having a budget - Know what you can afford and stick to it!

Lots of buyers get carried away with the excitement of the home buying process, and lets not for get the actual home shopping! One thing we always encourage our buyers to do before shopping for a new home, is to sit down and go over their finances and determine what amount they can afford to pay monthly for their mortgage. These means taking into account any current payments you are making (car payments, debts, or loans), bills, and items that you need on a day to day basis. 

2. Not checking credit reports - Take a look, and make sure there isn't anything that needs to be addressed prior to applying for a mortgage. 

Sure, lenders can tell you if their are any derogatory remarks or unsettled accounts on your credit. Keeping tabs on your credit score means you are aware of any potential errors, and also taking care of items prior to applying for a mortgage can mean less back tracking and getting you on your way to your dream home faster!

3. Not comparing mortgages - Talk to more than one lender!

Every lender and bank is different! Talk to more than one lender so that you can ensure you are getting the best deal, once a lender knows you are shopping around this will encourage them to be competitive and pull out all of the stops to win your business. Ask them about different loan programs and loan types, and which one they think is best for you. Just like a employer would interview a potential employee, you are interviewing the person who will help you through on of the biggest transactions in your life!

4. Applying for credit before the sale is final - Don't do it! 

Applying for and taking on new debt before the sale is final can alter your credit standing, and ultimately cost you your dream home. If you MUST, talk to your lender first so that they can advise you on the best way to do so. 

5. Becoming emotionally attached to a home - Keep a business mindset!

Buying a home is exciting, I mean, it's going to be your future home!  It is only natural for you to start planning and envisioning your life in a home, however you need to keep a business mindset. The sellers are most likely trying to sell their home for top dollar, and you are trying to acquire it as a safe investment. Don't let your love for the home cloud your judgement and decision making. 

6. Foregoing an inspection - It's Important! 

We all know we are in a very competitive market, and buyers are asking less and less of the sellers to make their offers stand out. There are other ways to be creative and not give up your inspection or option period! A home inspection helps the buyer to determine the condition of the house, and if there are any concerns all the way from the foundation up to the roof. Remember you are investing your money and time to this home, and you want to make sure your investment and family are safe in your new home. 

7.Underestimating costs of homeownership - There is more to it than a monthly mortgage!

Being a homeowner means you also now have utilities, taxes, insurance, repairs.. There is more to it than meets the eye! Remember that you are going to be the homeowner now, there is no land lord or property manager to take care of repairs or maintain your home. Potential buyers should take into account these items that come with homeownership when setting their monthly budget. 

8. Spending your entire budget - Save, Save, Save!

Take a look back at #7. Life is unexpected, and things just happen some times! Buyers should always have money saved should an unexpected emergency arise, so that you can pay your mortgage and any other necessary items. 

We hope that these 8 tips are helpful, and shed light on the common mistakes home buyers make. Our team stresses that each transaction is unique, and that situations are always evolving. If you are considering the purchase of a home, and would like to have a team of real estate specialists to help coach your along the journey, give our team a call!