Common Mistakes Homebuyers Make
July 14, 2017 | By Roy Farrens
Mistake 1: Not Getting Fully Pre-Approved Before Making an Offer to Purchase
In today’s competitive market, it is common for sellers to receive multiple offers to purchase their property. If your offer is contingent on your ability to qualify for a loan, it will not stand up to offers from buyers who have been pre-approved for funding. Plus, if you haven’t nailed down the details of your financing with your lender, you don’t really know how much you can spend. Shopping for a home without a pre-approval letter is almost guaranteed to lead to disappointment down the line.
Mistake 2: Making a Large Purchase, Applying for a Credit Card, or Changing Your Employment Status Before Closing
The lending process can be a long and complicated one, and your lender will check on your credit, assets, employment, and income multiple times before all is said and done. Until the keys are in your hand, hold off on taking any action that could affect your credit, make a dent in your assets, or change your employment status. The last thing you want is for your loan to fall through at the last moment.
Mistake 3: Disclosing Too Much to the Seller’s Agent
Make sure you understand agency and who works for whom. Anytime you meet a seller’s agent, exercise discretion. Revealing things like your timeline, your budget, or the fact that you are absolutely in love with the seller’s home gives them an edge up when negotiating the terms of sale. An experienced seller’s agent can do a lot of damage with even the smallest piece of information. If you encounter a nosey agent and are unsure of how to dodge their questions, just say, “You’ll have to talk to my agent, Roy Farrens. I hired him to answer these types of questions for me.”
Mistake 4: Forgoing the Home Inspection
Buyers sometimes choose to forgo the home inspection because they think it’s a waste of money, a waste of time, or think their offer is more likely to be accepted without an inspection contingency. While the latter may be true, skipping the inspection is simply not worth the risk. Home inspections can reveal hidden issues with a property and we strongly recommend all our buyers get them done. Spending a few hundred dollars on inspections can potentially save you thousands in the long run.