Mistake #1: Looking at homes before getting pre-approved by a lender.

Until you meet with a qualified loan officer, most people don’t know how much a lender is willing to loan you for a home purchase. Lenders essentially use five criteria in determining their willingness to fund your mortgage.

* Your income
* Down payment
* Credit record
* Employment status and history
* Value of property

A pre-approval from the lender will establish a price range to aid in your shopping. It also can be used as a valuable negotiating tool once you make an offer on a home.

It’s also important to use a local lender for the best experience possible. Watch this video with one of our local lenders to find out advantages.

Mistake #2: Selecting your lender based solely on a low interest rate.

The lowest rates in town are not necessarily the best “deal” for you. Lenders sometimes offer attractive rates to attract applicants from their pool of current borrowers. Their hope is to keep these applicants and then switch them to a program with different terms and rates. Rarely do these situations save the borrower money.  Our team works very closely with a number of top notch loan officers on a daily basis and is involved with hundreds of transactions each year. This gives us the advantage of being able to meet and recommend local lenders who are doing excellent work.

Mistake #3: Purchasing a home that fits you “right now.”

Many times buyers will underestimate the size of home they actually need and buy a home that’s too small in an effort to avoid the perceived added risk of spending more cash and incurring a higher mortgage payment. It will cost you less in the long run if you borrow extra cash.

Mistake #4: Failing to investigate property taxes.

Go beyond looking at the tax amount stated on the listing sheet or current tax bill. Call the county where the home is located and ask how often properties are reassessed. Also ask how much they will go up (on average).  If it’s been awhile since the last reassessment, you could incur a large increase once you are the owner. High taxes make properties unappealing for many reasons other than the large bite they take out of the monthly amount you can afford.

Mistake #5: Purchasing a home without a professional, experienced buyer’s specialist.

Having a knowledgeable, experienced buyer’s specialist offers you many valuable services and assures that you always have someone looking out for your best interests. Your buyer’s specialist will assist you in the selection process by guiding you to homes that are best suited to your needs, budget, and dreams. We have multiple excellent Buyer’s Agents on our Team who can help you navigate our local real estate market. Call them at 1-866-Murphy-NC or Contact Us online.

Mistake #6: Getting directly involved in the negotiations by working with a For Sale By Owner instead of using a buyer’s specialist.

We have seen this over and over and it usually stems from a natural inclination to save money. The only dilemma is the seller is the one providing the information and they have only one person’s interests in mind: their own. We have seen buyers pay too much, not notice major defects in the property, and not know what to verify when they are looking to purchase their home. In likely one of your largest purchases in a lifetime, it is best to have a consultant on your side to guide you through the potential pitfalls.

If you find and want to purchase a For Sale By Owner, we are here to help. We provide you the exact same level of expertise, negotiation, and service you deserve even if your property is not on the open market. So if you find one, all you have to do is let our Buyer’s Agents know which property you like.