Common Homebuyer Mistakes Essay
Common Mistakes People Commit When Buying a Home
Buying a home is an exhilarating time. More so for the first-time home buyer. But there’s more to buying a home than simply putting money down and signing on the dotted line. There are many homebuyer mistakes that happen that can turn a dream home into a nightmare.
Pre-approved
Before stepping into any potential listing, a new home buyer will want to first visit a bank or other lending organizations. Pre-approval for a mortgage loan is the only place to start. Lending companies are the rational voice that keeps a first-time home buyer from being their last. There really is a limit that a person can spend on a home. Going over that limit will only cause financial ruin down the road; sometimes very quickly.
Putting out all of a person’s finances and facing the reality that there is a limit on what they can spend isn’t glamorous. But being pre-approved for a specific amount will ensure a purchase that is affordable. Some people confuse pre-qualified with pre-approval. They’re not the same. A person may pre-qualify for an amount higher than what they will actually be approved for. Pre-approval is the number that matters. This is the amount home loans will be given for. This is probably one of the biggest homebuyer mistakes made, especially by …show more content…
This is the person who is working for the house seller. Their job is to sell the house. Misunderstanding this role is a typical homebuyer mistake. To receive accurate value for a home, having a buyer agent makes the difference. These agents work for the buyer to help negotiate on behalf of the buyer. Too often this small, yet important detail is misunderstood. To help understand the importance of this role, some people have referenced it to a divorce. “If you were getting a divorce, you wouldn’t go to your spouse’s lawyer for advice, would you?” The same thinking can be applied
Buying a home is an exhilarating time. More so for the first-time home buyer. But there’s more to buying a home than simply putting money down and signing on the dotted line. There are many homebuyer mistakes that happen that can turn a dream home into a nightmare.
Pre-approved
Before stepping into any potential listing, a new home buyer will want to first visit a bank or other lending organizations. Pre-approval for a mortgage loan is the only place to start. Lending companies are the rational voice that keeps a first-time home buyer from being their last. There really is a limit that a person can spend on a home. Going over that limit will only cause financial ruin down the road; sometimes very quickly.
Putting out all of a person’s finances and facing the reality that there is a limit on what they can spend isn’t glamorous. But being pre-approved for a specific amount will ensure a purchase that is affordable. Some people confuse pre-qualified with pre-approval. They’re not the same. A person may pre-qualify for an amount higher than what they will actually be approved for. Pre-approval is the number that matters. This is the amount home loans will be given for. This is probably one of the biggest homebuyer mistakes made, especially by …show more content…
This is the person who is working for the house seller. Their job is to sell the house. Misunderstanding this role is a typical homebuyer mistake. To receive accurate value for a home, having a buyer agent makes the difference. These agents work for the buyer to help negotiate on behalf of the buyer. Too often this small, yet important detail is misunderstood. To help understand the importance of this role, some people have referenced it to a divorce. “If you were getting a divorce, you wouldn’t go to your spouse’s lawyer for advice, would you?” The same thinking can be applied