Top 10 Mistakes Home Buyers Make When Buying

10 Deadly Mistakes to avoid When Buying a Home

If you are looking for homes for sale in Pleasanton or a Dublin Ranch Condo… You need to avoid these 10 Mistakes Buyers Make.

1. Making an offer and not being prequalified- Being prequalified will make everything in your life easier. If you think you qualify for a Pleasanton home at $800,000, you may not be. A lender will look at your income, debt, etc. to determine the price range you can afford. This is the 1st step you as a home buyer need to take.

2. Skipping a Home Inspection- When you are buying that beautiful home don’t try to save money by passing on an inspection. A lot of what an inspector looks for is hiding.

3. Limiting your search to open houses, ads or the internet- Many times a home in a newspaper or magazine is sold by the time it hits the stand. As for the internet, a lot of information is out of date because not all websites use direct feeds from the MLS. Contact a Realtor who specializes in the Pleasanton neighborhood you are interested in, they will get you into a home before an open house and get you info in a timely manner.

4. Choosing a limited service real estate agent- When you need info right away, want to see a home on short notice, need experience to help you buy your largest asset, hire a pro! When you hire a part time agent, you get limited experience.

5. Thinking there is only one perfect home- It is a process of elimination when buying a home. New homes come on weekly so being open to different styles while still meeting your goals is important.

6. Not looking long term- Look down the road 5 years to see what life may look like and purchase a home that will work with your changing life. A 1 bedroom might not work too well if you are planning to have a few kids in the coming years.

7. Not examining insurance issues- Purchase adequate insurance on the advice of an insurance agent. They can provide answers to any concerns you may have.

8. Not getting a home protection plan- This is an insurance policy of its own. This plan will protect basic repair needs you may encounter one year out from close of escrow.

9. Not looking at total costs- After you talk to a lender, talk to a Realtor to get an estimate of the total monthly costs involved. You will want to talk to your CPA to see what your tax return will look like for the year in which you purchase.

10. Not following through on due diligence- Make a list of concerns you have such as; schools, crime, neighborhoods, noise, traffic. Not doing your homework can have a negative effect on your purchase. Contact a Realtor who sells a lot in the neighborhood you are interested in.

FOLLOW THESE STEPS AND BUYING THAT PLEASANTON HOME OR DUBLIN RANCH CONDO WILL BE AN EVEN BETTER DECISION.

Mistakes to Avoid When Buying a Home

Biggest thing I see is a home buyer who thinks they know what they are doing, even if you have bought a dozen homes, you are probably not in the ‘market’ every day. It would be similar to getting on a medical site or a ‘how to carpenter’ site, the problem here is I am not trained as a doctor or a carpenter. I may have built a deck or repaired a sink, but sometimes projects get a bit too complicated. Look to an expert for help.

Number one – Look to an Expert

An experienced agent handles many transactions in many different ways, there is little an experienced agent hasn’t heard or experienced. If you have something on your mind or something you want to hide, ask it and tell it. Your agent will probably have a better plan or better way to help because they have seen it before. No two transactions are the same, but an experienced agent has the knowledge of previous transactions to help you in yours.

Two – Changing Your Credit

Lenders lend money based on credit scores, income and the ratio it provides. Ratios are key. For sake of easy math let’s use a word problem to explain, if you make $100,000 a year and have expenses of 35,000 you have a debt to income ratio of 35%. If you add on a debt (car purchase) before obtaining a loan you could exceed the maxim amount of debt to income a lender will allow. The moral of the story is, don’t make large purchases on credit prior to obtaining a loan.

Three – Buying a House You Shouldn’t Have

When you hire an expert agent you will most likely go over your wants and needs in a home. By doing so you will narrow down your search and ultimately purchase of a home that matches your needs and desires. Do you need 2 bathrooms or 5? If you have 1 child probably 2 will be fine. If you have a family of 8, you might need a few extra bathrooms. Make sure the home you purchase matches your finances first, your needs second and your emotions last.