Mistake #2: The Real Estate Buying Process begins primarily with a two step process. Get Pre-approved for a your Loan!
If and when you consider buying a home, after selecting the right Real Estate Professional. You should also get "Preapproved for a Loan". Before you get serious about buying real estate, find out how much mortgage you qualify for and get a preapproval letter from your lender. (You can check you local mortgage rates through the Miami Herald Business Monday and/or at BankRate.com). Many agents won’t even take buyers to showings until they have a preapproval letter.
Mistake #3: Maxing out your spending power. Qualifying for a half-million dollar mortgage does not mean you should buy a McMansion. First-time Home buyers should be aware of additional expenses such as property taxes, condo fees and maintenance. Many buyers fail to budget for these extra costs and assume they can afford a monthly mortgage equivalent to the rent they have paid. If you buy into a [homeowners association], you must also plan and for unexpected expenses that may arise. If a storm rips the roof off the clubhouse or the association decides to upgrade the common areas, you may get hit with a special assessment to cover those costs. For these unexpected situations, it’s a good idea to keep a cash reserve on hand. If purchasing using dual-income, from both couples choose to qualify based on just one income if possible to give yourself a financial buffer and stay conservative as much as possible.
Mistake #4: Skipping the inspection. If you’re in a competitive market that moves quickly, you might be tempted to skip an inspection to make your offer more appealing to the seller. This is a common mistake that should be avoided. All homes and Condos, whether a New Home or condo purchase or an existing home should be thoroughly inspected by a Professional Inspector. Home inspections can alert potential buyers to problems such as structural issues, faulty wiring, faulty construction and other problems a layperson probably wouldn’t spot. Insisting on an inspection, although it might slow the down the buying process. Include an inspection contingency to all offers that you make. Be cautious, you’re spending hundreds of thousands of dollars, and want to make sure you purchase a property, without hidden defects, that can be very costly to repair. Any seller that will not accept an offer based upon an inspection contingency, is probably hiding something anyway.
Mistake #5: Assuming you should buy at the asking price or, and flying blind when it comes to pricing and neighborhood stats. You need to do your homework! I cannot stress this enough.
There is a huge amount of information available on home pricing, neighborhoods, school systems — basically, everything you care about is easy to research online. This is a moment where your Internet browser can be your best friend. Making an informed decision is the best decision you can make as far as pricing. There are many tools and deep information about trends available to you, utilize them. (Visit Realtor.com, MiamiPropertyConsultant.com, AventuraPropertiesGroup.com). It makes sense to read up on the neighborhood in the local papers and visit open houses of competing homes. An informed buyer is a smart one, and today consumers and pros have access to essentially the same data. You might not be a born negotiator, and that’s OK. Many people are uncomfortable with the give-and-take of negotiations or feel unsure about how to approach it. This is where choosing the "Right Real Estate Professional", which will represent your interest, also comes into play. He or she can offer expert advice, and help when you need it.
Lazaro Lopez, PA
Broker-Associate
Fortune Int'l Realty
Cell: (786) 525-9430
E-mail: Lazaro@fir.com
http://www.MiamiPropertyConsultant.com
http://www.AventuraPropertiesgroup.com
