Even with COVID-19 affecting how we go about our daily lives, the Lake Havasu real estate market trudges on. Just last month, Havasu home sales saw an increase of more than 50% from May as the governor began to open up more Arizona businesses. If you’re in the market for a new property, avoid these common home buyer mistakes for a much easier experience.
Common Home Buyer Mistakes You Need to Avoid
Search for Homes By Yourself
Go ahead and start your househunting online. Make a note of particular properties you find interesting. But, before you go out and look at them, hire a Lake Havasu REALTOR® to help you out. They know the current trends in the marketplace as well as the inventory available. A good agent also helps you write a great offer and negotiates on your behalf. Plus, they can be your eyes and ears if you end up going the virtual househunting route. Be truthful with your agent about your budget so they know where to focus their attention in a home search.
Only Meet With One Lender
One of the other common home buyer mistakes I see is when a home buyer only meets with one mortgage lender. You need a pre-approval letter from a lender when you submit an offer on a house. To do that, you must find a good lender. Yes, that means filling out lots of forms in order to start the pre-approval process. That hassle tends to make home buyers stick to the first lender they see. But that could be to your detriment. Talk to at least three different lenders to see what they offer. Or meet with a mortgage broker who takes your information and finds the different options available to you from various lenders. A good place to start is by asking your REALTOR® for a recommendation. Then, talk to the loan officer at your bank. You can also ask your friends and family members who they used for their mortgage loans.
Wait for Your “Dream Home”
I hate to break it to you, but finding the perfect house is extremely rare. Even custom-built homes usually require a compromise or two. Instead, put together a list of what you absolutely must have in a Lake Havasu home. Size of the house. Size of the property. Amount of bedrooms and bathrooms. Two or three-car garage. Pool? No pool. Hot tub instead of a pool. Location. All of these help your agent to find the best property for your needs.
Present a Lowball Offer
Another one of the common home buyer mistakes I see is when a buyer submits a lowball offer. Of course, you want the best deal possible. But you don’t want to insult a seller and run the risk of losing the property altogether. Talk to your agent about a fair offer and let their experience be your guide.
Not Factoring in Closing Costs
You saved up money for your down payment. But don’t forget to add in the closing costs to your home buying budget. Sometimes, sellers offer money to help cover closing costs. However, ultimately, the buyer shoulders the responsibility of their own closing costs. In Arizona, this runs about 1.1% to 1.7% of the purchase price. For a $300,000 Havasu home, this means anywhere from $3300 to $5100 in addition to your down payment. Once a seller accepts your offer, talk to your lender about estimated closing costs for a better picture of what to expect.
Spending Big Bucks Before You Close
I cannot express this strongly enough. DO NOT SPEND MONEY WHILE IN ESCROW. I know. You’re excited about moving into a new home. You’re already considering how to decorate the new place. Or you want to trade in your jalopy of a car for a new one. You were already pre-approved so you’re golden, right? No. Stop! Your lender runs another credit report right before closing to make sure your credit score hasn’t changed since your pre-approval. If you spend more money while in escrow, that increases your debt load and changes your score. A change in your score could mean a higher interest rate or worse…a decline of your loan altogether. So, save big purchases until AFTER you receive the keys to your new home.
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