Hi everyone, I’m Tina Branch, a local Realtor here in Baldwin County brokered by Elite Real Estate Solutions.

If you are going to be moving to Baldwin County, please consider subscribing to my YouTube channel, I talk about a lot of really cool stuff related to Baldwin County and If you are going to be living here, I’m sure you are going to want to know about it.

 

Top 7 Home Buyer Mistakes

Now, let’s move on to the topic – Top 7 Home Buyer Mistakes.   Let me start by saying these are in no particular order except the last one, number 7. It is the most important of all the mistakes to avoid.

 

Mistake #1 – Falling in Love with the House to Soon

Okay, let’s start with number one. The #1 mistake is falling in love with the house, too soon. Just wait till after the home inspection and termite inspection have passed to fall completely in love with the house, please. I know that you want the house if we wrote the offer and are now under contract but, if you are head over heels in LOVE with the house, that really takes away all negotiations that I can have with the seller. You’re going to have to still have in the back of your head that you may walk away from house IF you find something in the home inspection that the seller is unwilling to fix.

 

Mistake #2 – Waiving All Contingencies

Mistake #2 is waiving all the contingencies. Currently, with this being a seller’s market, a lot of buyers are being advised to wave all the contingencies. We have several contingencies here in Baldwin County that protect your earnest money and provide you with outs in the contract if you decide not to or can not purchase the home. The contingencies in our contracts are Financing, Appraisal, Inspections & Due Diligence, Insurance, Internet, Termites & Wood Destroying Insects and Fungus, Survey & Elevation Certificates.  Alabama is a buyer beware state. I do not recommend to any of my clients that you waive all your contingencies especially, the home inspection and termite inspection.

 

Mistake #3 – Getting a Pre-Qualification Letter from a Reliable Lender

Mistake #3  I’m sure you know this one but, it may not be for the reasons you think. Getting a pre-qualification letter from a reliable lender!  Don’t go with a lender just because they quote you the “best rate”. You need to ask for all the fees they are going to charge you to get that rate, what type of loan you are doing, and why is that that loan the best fit for you.

Some lenders could be a bait and swap situation. If you are going online and they give you a quote up front, that may not be the rate you end up getting after submitting all your information.

An online lender in some cases can work out okay however, in my experience, they are difficult to get in touch with which can cause delays in getting your home to closing. I have found it BEST to have a local lender who is well established. One you can pick up the phone and easily call, have a conversation with them and let them educate you on the loan and why it is the best fit for you.

Just in the last few months, I have heard agents talking about lenders who have “ghosted” them. They stop responding completely! Which is scary on both sides of the deal and usually causes you to lose out on purchasing the home because you have to start all over with a new lender and that does not look good in the eyes of the seller. If you don’t have a reliable lender you can ask your real estate agent for a list.

 

Mistake #4 – Not Having a Pre-Qualification Letter Before Home Shopping

This leads up to Mistake #4. Not having the pre-qualification letter before shopping for homes. I’m sure you have heard this one in every video you have watched about mistakes a buyer makes in purchasing a home. When you submit an offer on the home you need to put your best foot forward and that includes showing the seller you can purchase the home. If you were selling a home and received two offers, which one would you take, the one with a pre-qualified buyer or one who still has to contact a lender to receive a letter? Who do you feel is more serious and prepared to complete the deal?

 

Mistake #5 – Not Being Flexible While Home Shopping

Mistake #5 is not being flexible with what you are looking for in a home. Have a conversation with your REALTOR® before you begin house-hunting to set realistic expectations for what you can get in your price range. I can’t tell you how many times clients have told me, “I wish I could just pick this home up and move it over to the other location.” If you hate the countertops in the kitchen, you can upgrade those later down the road. The most important things are the things you can’t change, like the location or the neighborhood or the school district.

 

Mistake #6 – Not Having a Dedicated Buyer’s Agent

Mistake #6 Calling a bunch of different Real Estate Agents to show you homes. The agent’s whose sign is in the front yard represents the seller. Therefore, their primary goal is to sell that house and get the seller as much money as possible. You should find one agent who you trust to represent your best interests and be your Buyer’s Agent. This is true if you are purchasing a resale home or new construction home.

 

Mistake #7 – Not Setting a Budget

Now, let’s talk about the most important mistake home buyer’s make when purchasing a home. Mistake #7 Not setting a budget. You’ve spoken to a lender, and they tell you are pre-qualified for a loan up to blah blah amount. You’re happy yay! You start looking for houses in that price range and love them all. So you will find a home that you are going to really enjoy.  Maybe you even move forward and go under contract. Then you get stressed because you start thinking about the monthly payment and all the other spending you like to do.

See the loan officer looks at your income and your debt-to-income ratio. Not how much you spend on gas per month or how often you like to eat out. So, have a conversation with the lender about how much the monthly payments will be per month and think about your budget in that way. Then set the limit of what you are willing to purchase in a home price, not just what you are approved for in a loan.

So now you know more about the Top 7 Home Buyer Mistakes. If you are thinking about moving to Baldwin County, you can head on over to my website homepage TinaBranch.com and search all the homes that are currently for sale in your price range in Baldwin County.