5 mistakes to avoid when buying a home

anthony patton

Five Mistakes to Avoid When Buying a Home!

Buying a home is a very exciting time for anyone! There are many emotions and feelings that a buyer experiences during the process and buying a home is no-doubt, a process that requires a lot of focus and attention to details. There are many “moving parts” within the home buying process and unfortunately, there are many things that can go wrong when buying a home. There are mistakes that buyers make that are more common than others! These mistakes can easily be avoided with proper research and preparation.

Here are five mistakes to avoid when buying a home!

Not Getting Pre-Approved
The first mistake to avoid when buying a home is understanding what a pre-approval is and not obtaining one.

For starters, a pre-approval is very different than a pre-qualification. A pre-qualification can normally be obtained by a simple phone call to a mortgage broker. A mortgage broker will use information, such as income, debts, and assets, that is provided to them by the potential borrower to “qualify” them. These pre-qualifications are subject to verification of the information provided by the potential borrower. A pre-approval should be obtained prior to looking for a house in most cases. A pre-approval requires a formal application be completed with the lender and the potential borrower will supply actual data (W-2’s, Tax Returns, Bank Statements, etc.). Once this information is collected, the application and documents are either ran through an automated system or reviewed by a mortgage underwriter, who will determine if the buyer has been approved. There are often only a handful of “conditions” with a pre-approval, such as a satisfactory appraisal being completed once the borrower finds a suitable property. We provide you with a certified homebuyer approval certifying you can purchase a home giving you peace and showing any potential seller you are serious.

As you can see, a pre-approval is not the same as a pre-qualification. If a buyer doesn’t understand the difference, this can be a huge mistake. In a real estate market that is seeing multiple offers on properties, having a certified approval can be the difference and help the buyer win in a multiple offer situation! A buyer must also be aware that some lenders use the two words, pre-approval and pre-qualification, interchangeably, which is not correct. Bottom line, get pre-approved!

Selecting the Wrong Real Estate Agent
It is extremely important to a buyer or seller that they select the “right” real estate agent to represent their best interests. So when buying a home, what makes a great buyer’s agent?

There are many things that a real estate agent must do to be successful, some may consider a great real estate agent a “jack-of-all-trades.” A great buyer’s agent should be seen as an expert adviser, not a “salesperson.” They need to be able to discover the needs and wants of a buyer, educate them on current market conditions, help buyers locate homes that can potentially suit their needs, and much much more!

In addition to the real estate “skills” that a great buyer’s agent needs to have, there are also other things that should be taken into consideration. It is important that a buyer feels comfortable with their real estate agent, as there are sometimes personal topics discussed, such as finances. It’s also important that a buyer understands how their real estate agent is able to communicate and determine if it’s going to work for their situation. If a buyer prefers e-mailing, then they better make sure their real estate agent is abl