Common buying mistakes
Smart Buyers avoid the most common mistakes made by normal buyers.
- Unknowingly participating in a mortgage loan that may not be in your best interest.
A professional mortgage officer knows, in excess of 50 ways to finance your mortgage. Everyone's personal situation is a little different. As an example, your mortgage can be designed to reduce your payoff term and increase your equity with virtually the same monthly payment. Why wouldn't you choose this type of alternative, because, you simply did not know. A Smart Buyer is a person who wants to know! We believe that is YOU.
- Waiting until after the contract to process their mortgage, or just obtaining a pre-qualification letter before submitting a contract.
Pre-approval benefits you more than you can imagine. By starting your loan process and obtaining loan pre-approval, not just pre-qualification, will place you be in a much better position to negotiate with a seller who knows you are financially prepared.
Additionally, you can solve any obstacle, no matter how small, without delaying the closing as many buyers do by processing their loan after placing a contract on a home.
- Not having a thorough market analysis prepared for the home that you choose.
With Realtor's computer capabilities, agents have complete information, and you should have all the facts as well. Knowing details regarding comparable sales and active competition will increase your knowledge when you are negotiating the price and terms of your home. (Some buyers do pay top dollar for their home, but it shouldn't be without knowing where they stand.)
- Not having complete cost estimates based on the specific home contracted for, not just an estimate done at loan application.
Each home has specific costs associated with it, such as taxes and insurance. These can vary dramatically in different areas.
- Settling for weak negotiating. This can cost you a few hundred or thousands of dollars.
Many buyers and agents settle for that "let's just get a deal done" scenario. Think about it sincerely; would you rather just make a deal, or do you want your representative to do the very best possible negotiating on your behalf?
- Not being selective - trying to see everything in and out of their price range, (or being too selective.)
Seeing homes in the proper price range and areas gives you a better feel for the market, and educates you while you look. Your area has a variety of neighborhoods and property types. Make sure that you see what you need to be comfortable with your decision. These statements are not contradictory; you should see all that fits you without wasting time on homes that won't.
- Not previewing schools, shopping, and other neighborhood amenities.
Take the time to know the convenience of your area, and whether the schools, shopping and amenities will help you attract the next buyer.
- Not requiring the proper inspections.
It is money well spent, and paying attention to the results will let you know the condition of the home that you plan to make yours. In addition, making sure that a home warranty is in place can save you unexpected expenses.
If you have any questions on the above information or would like to begin the pre-approval process please visit the mortgage link section on our website or call.
Gordon Tews - Office: 250-744-3301, Toll Free: 1-800-663-2121, Cell: 250-661-5180