40 Homebuyer Mistakes To Avoid

Barry Kunselman | 303.88.0588 | Contact Barry

Buying a home in the Denver Metro area can be very strenous for both first time and move-up homebuyers. With the current housing conditions, many homes under $400,000 are selling very fast. Bidding wars are common with houses selling at or over asking price.

Avoid these mistakes to better your chances at winning the ideal Denver home for you and your family:

Before Making An Offer

Not getting pre-qualified to know how much home you can afford.
Not fixing errors on your credit score. You can save thousands on your loan by raising your credit score. Borrowers with low credit scores generally get higher interest rates than the an identical borrower with a high credit score.
Skipping mortgage pre-qualification.
Assuming you need 20% down payment. Borrowers can purchase a home with the following down payment options, 3%, 3.5% (FHA), 5%, 10%, 20% and in some case buyers purchase a home with as little as zero down!
Choosing the wrong lender. Did you know some lenders need 45 days to close a loan and some need 30 days? If you lender needs 45 days your offer may be ignored by the seller because they don't want to wait the additional 15 days to close.
Choosing lowest interest rates but not considering heavy restrictions and penalties
Failing to consider maintenance costs and fees on top of monthly payment. Property insurance, taxes, homeowners association dues, maintenance, and higher electric and water bills.
Failing to anticipate increase in fees. Taxes & insurance tend to go up every year. Will you still be able to make payments with higher rates?
Spending all your savings on downpayment and closing costs. Always have a rainy day fund.
Being too picky on limited funds.
Not seeing a property in the first 24-48 hours it goes on the market. In a highly competitive/low inventory market like Denver, over 60% of affordable homes go under contract in 7 days or less. Get your agent to set that appointment. { See the latest Denver homes for sale }
Indecision. That house you saw today and thinking about buying might already have an offer the following day from the buyer who saw it yesterday.
Lacking vision. Doing upgrades, even with a contractor, is often cheaper than buying a home that a seller has upgraded.
Being swept away by staging or a home with minor upgrades.
Compromising on things that really matter to you. If you hate apartment living. Do NOT buy a condo!
Not choosing an agent. Get professional help. Consider attitude, skills, credentials and experience when choosing your realtor.
Using the seller's agent as a first time homebuyer. There are exceptions to this rule but it might be better to hire your own agent for a truly independent advice. Dual agents could face a conflict of interest.
Blind faith. Verify the accuracy of your information independently as much as possible.
Not thinking about future home values.
Not anticipating development plans like major highways. Ask questions about zoning and planning.
Not researching for what could be built on the undeveloped land beside your the home.
Not getting a feel of the neighborhood. Is this truly the location you want to settle in? Get an area tour. Talk to potential neighbors when possible. Some homes have deed restrictions that are in conflict with your plans.
Putting to much faith on online home values. That home you want might have an overpriced zestimate. Check with your agent for an accurate home evaluation.
Exposing how much you love the home to the seller or seller's agent. Not every home receive multiple offers. You might end up paying far more than the true worth of the house.

After An Accepted Offer

Top Mistakes a homebuyer can make after your offer is accepted Buyer client on car lot before closing

Verbal acceptance of offer is not final without the paperwork. Seller chose you over other bids? Sign that paperwork fast!
If you do not turn in your earnest money in time your contract will be canceled.
Buying a car or opening a credit card.
Closing a line of credit. Check with your lender before you take action.
Don't skimp on inspections. Have a reputable inspector check the foundation and structural features of the house. Check the plumbing. Check for mold or pest infestations. Heating and air conditioning, as well as the electrical system need inspection too.
Did you know a sewer scope is NOT included in a typical home inspection? ( Sewer inspections can save a lot of headaches…)
Unwillingness to kill the deal when your home inspection uncover problems in the house. Structural faults, water & pest damage cost a great deal to fix.
Failing to be very focused and responsive while in a transaction. Delays can cost you money.
Have an experienced agent with systems in place to stay on top of things
Sign lead based paint along with your offer or the contract is void.
Waiting too long to order appraisal.
Lenders can and do check your employment the day of closing. If you've been fired or your working hours have been cut they can refuse to give you a loan.
Opting out of mortgage protection insurance. Be sure to protect your biggest investment.

After Closing

Top Mistakes a homebuyer can make after closing

Rushing into renovations as soon as you buy. Take time to make a solid plan that will maximize return of investment.
Overimprove.
Not checking if you qualify for any property tax exemption.

Don't let these mistakes keep you and your family from buying your Dever Metro home. Let's get together to discuss your options. Contact me at 303.887.0588 or email barry@porchlightgroup.com.

You Might Be Interested In...