• Home
    • Blog
    • 5 Biggest Mistakes Buyers Make When Buying A Home

    5 Biggest Mistakes Buyers Make When Buying A Home

    Nobody wants to make a mistake when buying a home! Especially ones that will cost you lots of money or loss of time. Watch this video and learn from other buyer’s mistakes instead of your own mistakes. In this video, David Pestana – Broker/Owner of Rise Utah Realty shares an article with you from Forbes Magazine called the “5 Biggest Mistakes Buyers Make” when buying a home. He adds stories from his experiences to help educate you, as he does with all his clients. Make sure you LIKE & share this video with anybody you know who is looking to buy a home as it’s full of helpful tips!

     

    Transcription:

    Today we’re going to be talking about what is the biggest mistake that buyers make. This is coming from an article by Forbes magazine. And I thought it was very valuable for everyone so I want to be commenting on it. Hi I’m David Pestana Broker Owner of Rise Realty. The first biggest mistake that people make is not meeting with the lender early enough. Can’t tell you how many people I talked to that they wait to talk to a lender after they’ve found their perfect home. And in this competitive market it could be too late because it takes time to get pre-approved. And when we’re submitting offers we’re only submitting offers with preapproval letters. So if I was the listing agent I wouldn’t accept your offer because I’d probably have other very competitive offers if not better that party have a preapproval letter. And it’s very important also that you know that the terms and conditions upon which you can buy the home you don’t want to find out those so so late everybody says well I have great credit. Well I’m sure you do. But the problem is do you know exactly what your down payment is. And the program that you’re going to be using to get that right down payment is it going to be. Are you qualified for 100 percent financing. Or do you need to put 20 or 30 percent down. All right the second biggest mistake that people make is they rely too much on what family and friends say you know if you’re a first time buyer it’s understandable you’re going to ask your family and friends about their experiences. But to be honest every real estate experience is different and you’re unique. Also your taste is unique. One problem that I see that people make is they bring their parents with them through a home tour. And what we find out is they absolutely love the home. But their parents don’t. But who cares what your parents think. If you love the home. If it’s right for you it should work. So be careful what they say and their input. You may only want to show them home after you’ve actually bought it or decided that you’re going to buy it so that they don’t sway you that much. Now the third mistake that people make is waiting for what we call the perfect home the perfect homes like a unicorn. It doesn’t exist. It’s a great idea. But it doesn’t exist. What you want to look at is what are your absolute needs and a home versus your wants now the needs are things that you cannot live without. And the wants are things that you would really like at home. But if if they didn’t come with that fine example of mine would be like when I was looking for my home. I would love the three car garage. But it ended up settling with the two. But I’ll tell you what a garage wasn’t optional for me. I didn’t want that. So a perfect home could be a layout. It could be a location. We try our best to get you the right home but rarely do you have a perfect home. I know people who have customized their their own home and in the end it still wasn’t perfect. Because what happens is that your personal needs change your family life changes you get a pet. And also you need a different place to put them. So everything changes. Homes are more stagnant. Were family and circumstances are more dynamic. So just try and find a home that best matches your criteria and first focus on your needs and then look at your wants and see if you can afford some of those wants. That’s all. Fourth biggest mistake is that buyers make is that they bite off more than they can chew financially. This is so easy. In fact I see this most when looking at new homes. It’s like this buyer’s creep. OK so you you you look at a new home and let’s say it’s for 295 starting price. And by the time you get your upgrades and the right paint colors and everything you’re now at 345 and you had committed previously that you wanted your payment to be lower than that. So you got to be very careful about looking at homes. It’s real easy to justify an extra hundred or two hundred dollars a month. The problem is that once you buy the home you’re cash poor and your home broke as we say. So you’ve got a great house but you can’t do any repairs to it. You need to set aside enough money to repair the house. Doesn’t matter how new it is. Things happen in a house. And you don’t have a landlord now you own the house so you have to be the one to be able to have the money to fix those things. So make sure when you’re buying a house that you have enough room financially for that. The fifth biggest mistake that we’re going to talk about today is when buyers go on a shopping spree after applying for a mortgage. Now mortgage lenders pull your credit and which you need to understand is if you go spend your credit card on a big shopping spree and it’s really tempting to do it because you just found your perfect home. You’re excited to buy it and you want to go start ordering furniture right away for it. So let’s say you go to our local RC Willeys here and you and you buy a couch and a table and you just put five thousand dollars on your credit card. Well when you’re an underwriting before you close they’re going to pull your credit again. And if they see that you have five thousand dollars more debt with 200 dollar monthly payment on that well you could be in jeopardy of disqualifying yourself on that loan. So that’s a huge huge mistake because all of the sudden now you can’t buy the house and what more terrible feeling it is to have gone through this whole buying process to find the house that you love. And now all of the sudden you made a simple mistake of getting furniture too early and they can’t buy it. So while you’re under contract the rule is don’t buy anything. Keep your finances as stable as possible so that you can not red flag anything for the underwriters and you’ll be able to buy that house. Thanks for watching this episode. And as always we’re here to help. If you have any real estate needs in the Utah area please reach out to us. Give us a call and like this video and share it with your friends. So we can keep producing more content. Get any questions right and the comments or just call us. Thanks.”

    Trackback from your site.

    Leave a Reply