3 Major Buying Mistakes

Not every mistake in a real estate business transaction can be reversed, much less fixed before closing. If a buyer slips up and makes an innocent mistake, they might be stuck with the consequences for a long time or, worse, their deal might not even close. It could fall out of escrow.

Here are a few of the BIG mistakes that are commonly made:

Number One Mistake: Being reluctant to a trusted advisor

This advisor could be your real estate lawyer or real estate agent. Buyers hold back information for a variety of reasons such as:

Fear of how they will be perceived
Irrational belief they have all the answers
Don’t feel it is important enough
Lack confidence in their advisor

Experienced real estate professionals handle such a multitude of transactions and personality types, there’s little they haven’t heard before. Your advisors are representing your best interests and have a fiduciary responsibility to do so. They can’t help you if they don’t know what you are doing behind their backs. Plus, they will likely have a better idea for you than you can dredge up.

If you have cold feet and have thoughts about backing out of the transaction, talk to your agent about those feelings. Your agent can help walk you through the concerns. Pros will help you to decide if you really need to cancel and, if so, manage the transaction so you can get your earnest money deposit back.

Number Two Mistake: Altering Financial Pictures before Closing

Do not acquire anything on credit and / or with a credit card once you have completed a loan application. Do NOT buy:

-Automobiles

-Washers, dryers, refrigerators

-Lawnmowers or garden equipment

-Expensive electronics or computers

-Furniture for your new home

Even slight alterations in your credit ratios could cause an underwriter to throw out your loan and deny it. If your loan contingency has expired or been removed, you could forfeit your earnest money deposit in addition to losing the home.

Number Three Blunder: Buying the Wrong House

The very first thing home buyers should do is make a list of priorities and define home purchase objectives. Figure out what features and benefits are most important and which you can live without. Before you close escrow, review this list. It’s easy to ignore a major factor that could come back to haunt you later.