5 Biggest Homebuyer Mistakes
Mistake 1
Buyers purchase a home without the help of professional advice. They learn (often the hard way) that potential savings are often eaten up in wasted time, mistakes, and poor negotiation. If trying to save money by NOT using an agent, BEWARE! First if you are dealing with a seller that has an agent, you will be dealing with a professional who negotiates home purchase issues every day and they work for the seller, not you! Their job is to get the seller the most money possible, plain and simple, and without the knowledge of an agent on your side, you may end up paying for many items that are traditionally seller costs. If you are dealing with a For Sale by Owner, you must realize the reason this person is not using an agent is one of financial gain. They are trying to make as much money as possible, for them, NOT you. Typically, FSBO properties are priced 5%-8% above market value and they end up listing with an agent in less than 1 month!
Mistake 2
Buyers try and purchase a home BEFORE they get approved for mortgage financing. Quite often sales contracts must be canceled due to the inability of the buyer to secure financing!
Mistake 3
Buyers hear news reports about interest rates going up or down and try to anticipate interest rate movement. By the time the news is announced, the markets have typically adjusted or changed already. Today’s markets are very efficient.
Mistake 4
Buyers shop for mortgages exclusively by interest rates, ignoring other fees, references, reputation, and track record of lender. Junk Fees add to the overall cost of a loan, and missing a closing date through inept loan officers, can cost thousands of dollars! Some have even found themselves without a home when their financing fell through at the last minute. Rates don’t matter very much if the loan can not be delivered as promised!
Mistake 5
Buyers receive funds, sell assets, or purchase assets in the middle of the mortgage process. This is a NO! NO! Mortgage lenders do not like to see changes in your financial picture during the loan process. PLEASE don’t make any large purchases. I’ve seen the purchase of furniture, before closing, disqualify a buyer from their purchase.
For More Information, please contact the Get Home Denver Team
Bob has been an active REALTOR for 18 years. During this time, he has closed over 500 transactions, and has been the broker of record for 1000's more. Bob can be reached via email (bob@gethomedenver.com) or phone (303.770.1180.)
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Check out what others are saying about this post...[...] Bob wrote an interesting post today on 5 Biggest Homebuyer MistakesHere’s a quick excerptI’ve seen the purchase of furniture, before closing, disqualify a buyer from their purchase. For More Information, please contact the Get Home Denver Team. [Slashdot] [Digg] [Reddit] [del.icio.us] [Facebook] [Technorati] [Google] … [...]
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