Real estate professionals see a lot of reasons why home buyers ultimately end up losing out on a deal. Practitioners recently shared some of the more common mistakes and ways to correct the situation:
1. Shopping outside their price range.
It sounds obvious, but some home buyers just have trouble sticking to a budget. Shopping online may increase the temptation to bump up the price range. One way to avoid this situation is to get preapproved for a loan so you know what you can truly afford and stay within your limits.
2. Submitting lowball offers in a hot market.
We are in a seller’s market, making a crazy lowball offer can piss off the seller. Buyers would be smart to offer full price when homes are priced well. I can help you understand how a comparative market analysis can offer insight into pricing.
3. Making a big purchase while in escrow.
Buyers often don't realize they will need to delay big purchases and opening new credit lines while in the process of buying a home. Even buying a fridge can throw off your credit or debt-to-income ratio. If a big purchase is made, the mortgage lender’s underwriter will need to re-evaluate the buyer’s finances and recheck her credit report before closing to ensure the buyer still qualifies for the mortgage, so be sure to heed warning when you're approaching this period.
4. Forgetting to budget closing costs.
Buyers don’t just need money for the down payment. There are a lot of extra fees at settlement, too. Buyers can receive an estimate from their mortgage lender of what the closing costs will be before even making an offer on a property. Make sure to review that information carefully. Closing costs can vary drastically but typically cost 2 to 7 percent of the home’s purchase price.
