Orlando Home Buyers Mistakes

Buying a home is a serious investment. A mistake along the way can leave you in a state of financial and emotional turmoil. This list  will help assure that you do not fall into many of the common pitfalls buyers often encounter.

Not checking and fixing your credit
Not getting pre-approved for a mortgage before going out to look at homes
Making a large purchase while in the process of buying a home (car, furniture, etc.)
Not realizing that you can find the perfect home on the first day
Going to new construction or a for sale by owner without your Agent
Not getting a Home Inspection
Using an attorney who is not a real estate specialist
Not telling your Agent exactly what you want and don’t want in a home
Getting too emotional – buying a home is essentially a business transaction

Not checking and fixing your credit

Before applying for a mortgage you should obtain copies of your credit report and your FICO credit score and make sure that you check to see everything is in order. You can order your FICO score from Fico at: http://www.myfico.com/Products/FICOOne/Description.aspx?fire=1 for a fee of $14.95, this will include a copy of your credit report. Understand that your credit score will affect your ability to purchase a new home.

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Not getting pre-approved for a mortgage before going out to look at homes

Getting pre-approved will help you better understand how much you can afford. You will not be wasting time looking at homes that are out of your price range. Also, when presenting an offer to a seller, a letter of pre-approval shows that you are able to purchase the property.  Please read my section on the difference between Pre-Approval and Pre-Qualified. 

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Making a large purchase while in the process of buying a home (car, furniture, etc.)

Purchasing a car or other large ticket items before buying a home will have an effect on what the mortgage lender determines you can afford for a home. Avoid purchasing big ticket items; it can raise your debt-to-income ratio. Your debt-to-income ratio is used by lenders to determine how much of a mortgage you can afford. Resist buying these items until after you have secured your mortgage.

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Not realizing that you can find the perfect home on the first day
When you find your dream home act quickly. Make a decision so someone else does not buy the house while you are thinking about it. Remember, you can find your dream home on the first day.

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Going to new construction or a for sale by owner without your Agent

Your real estate agent can help you understand the basic terms of your agreement with the builder and help to ensure that you’re comfortable with the transaction. Real estate agents will assist you in the process before you sign anything and make sure all of the costs, upfront, nonrefundable, and long-term, are clearly communicated and understood by all parties. 

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Not getting a Home Inspection

Inspecting the physical condition of a house is an important part of the home-buying process. This is done for your protection. Before you close escrow, you should have the property inspected. Home inspectors are trained to look for defects and malfunctions in the structure of the home. These include the roof, plumbing, or foundation. Also make sure you have a termite inspection done on the property. Even if the seller provides you with an inspection report, it's is still best that you have your own independent inspection done on the home.

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Using an attorney who is not a real estate specialist

If you decide to use an attorney make sure he specializes in real estate law.

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Not telling your Agent exactly what you want and don’t want in a home

Communication with your Agent is essential when looking for your new home. Let your agent know exactly what you want and don’t want. This will help your agent locate the right home for you. As you view properties, be sure to tell him/her your likes and dislikes. This will save you and your agent from spending time viewing properties that do not meet your criteria. 

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Getting too emotional – buying a home is essentially a business transaction

When buying a home it is easy to get emotional. Try to limit your emotions and think of the process as a real estate transaction. It is to say not that emotions do not play a part in buying your next home, they definitely do and you will know when you find the right home. However, emotions can cloud your better judgment; so try to balance the two. When you find the right home, everything will fall in place: price, location terms. Never let the seller see your emotions – keep your poker face on when dealing with the seller.

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