10 Home Buying Mistakes You Must Avoid
The Biggest Home Buying Mistake you can make is -NOT BUYING AT ALL.
If you can afford a home and you don’t make that purchase, you’ll lose the benefit of tax deductions, building home equity, increasing net worth, not to mention the enjoyment of home ownership that your family desires.
We’ve written a Free report that every home buyer needs to read. Whether you are a first time buyer or this is your second or third house, this report is an absolute “must read”.
Here is the First Home Buying Mistake You Must Avoid
1. Seeking a Loan without a Pre-Approval
Not being pre-approved prior to shopping for a home is the number one cause of headaches and delayed closings.
When shopping for a loan you have two options; get a pre-approval or simply get pre-qualified. Pre-Approvals and Pre-Qualifications are two very different things. For a Pre-Qualification, a loan officer asks you a few questions and provides you a “pre-qual” letter in good faith, based on the unverified information you provided.
This is 100% contingent on the information you provided being accurate; and is therefore unreliable as a true measure of your borrowing capability. The pre-approval process is where the lender actually verifies the answers to the questions they ask.
The benefit is that the seller has more confidence that you can close the transaction because a lender has carefully reviewed your income, assets,
credit and other relevant information. In some cases (multiple offers, for example), being Pre-Approved can make the difference between buying and
not buying a home. Some sellers – who may otherwise hold out for a better offer – may also take a lower offer if they know the buyer can actually close on the property.
Additionally, if you are shopping for bank owned property or a property in short sale; the current mortgage holder will only discuss a sale of the home with pre-approved borrowers.
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