6 Most Common Mistakes Home Buyers Make
1. Not getting Pre-Approval before you do your House Hunting
The last thing you want to do is fall in love with a house you can’t afford! To prevent this, one of the first things you should do is get pre-approved for a Loan.A good mortgage broker can help you find just the right mortgage product for your needs. Some banks might pre-approve you for a higher amount, but you don’t want to overextend yourself. Being realistic about what you can actually afford is always the best option. If you make an offer on a house, you will also be in a stronger buyer position because you’re pre-approved.
2. Not Seeking Advice from an Experienced Professional
There is a lot of information you can find online, but you still need to get an experienced professional early on in the buying process. Professional Realtors can educate you about the processes, especially if you are not familiar with local laws and regulations in the area. An experienced Realtor can save you time and money as well as mistakes. They can tell you if you need an attorney to review your purchase documents, or Purchase Sale Agreements and they can give valuable insights into the neighborhoods you’re looking for. Sometimes real estate agents have access to a property before it even goes on the market as an added bonus.
Finding a real estate agent to work with is important. Make sure you are working with an AMPI agent if you are looking for properties in the Puerto Vallarta or Riviera Nayarit areas of Banderas Bay.
3. Not Making an Informed Offer
A common home-buying mistake is letting your emotions take over with your offer. Instead, only make an offer if you’re sure the property is right for you and make sure your offer is based on comparable sales in the area, rather than just how much you like the house. The price should reflect the market value of the home.
4. Not Being Able to See the House Past Its Appearances
Potentially this is a two-pronged issue, and both can be problematic. The first scenario is finding a house that is updated with beautiful finishes, fixtures, and is decorated beautifully. Buyers can get so connected with looking at the superficial details and forget about things that they can’t change about the house like the location, or that it’s on a busy street.
It can also be the reverse: Home Buyers may overlook at a home that needs some paint and cosmetic updates, but that has great bones and a good location. When shopping for a home, keep in mind cosmetic details can be altered, as well as issues being expensive or impossible to fix.
5. Making Buying a House an Emotional Decision Instead of a Business Decision
You never want to fall so in love with a house that it turns into an emotional decision. If you so attached to the house you feel like you’ll do anything to get the property, you can end up overpaying for the home. That can lead to buyer’s remorse and feeling like you didn’t get the best value for the property. The buying process can be emotional, but that is why you want someone on your side that can keep your emotions in check. Stay business minded and remember that this is a serious commitment that you will live with for years to come.
6. Only Looking at Mortgage Rates From One Lender
Make sure you’re doing your due diligence when it comes to mortgage loans. You should speak to an experienced loan officer who can look for the best rates and mortgage products especially for you. Mention your personal needs so they can help guide you towards the best loan program for you. You may save a lot of money that way.