Buying a Home?

Seven Mistakes You Should Avoid

You can save a lot of money, stress and time by following a few simple guidelines when you get ready to buy your next home.

1. Tell Your Agent and Lender about any Credit Problems.
   Unfortunately, too many people believe they can hide any their credit problems. They can’t… and the problems will always show up at some point. Honesty is always the best policy. If there are any potential credit problems, make sure you talk with your realtor and lender up front, before you begin the buying process. That is the time to fix credit problems. Your real estate agent and lender can assist you in clearing up credit problems, before they come back to haunt you.
   
   
2. Your first step, before buying, is to meet with a lender and get pre-qualified.
   It is very important for you to become pre-qualified for a loan before you begin searching for your home. A good mortgage lender can normally help you with this very quickly. Then, you will know exactly how much money you can afford to spend on that dream home. You’ll also know all the terms of the loan agreement, such as the length of the mortgage, your monthly payment and interest rate. However, the most important thing you will do is position yourself as a serious buyer when you make an offer on your dream home. The sellers will realize that they are working with someone who is ready, willing and capable of buying their home.
   
   
3. A Home Warranty is a must.
   Always, always ask your real estate agent to include a home warranty as part of your purchase agreement. It is not an expensive option for the seller, but can protect you against several thousand dollars of repairs. A home warranty usually includes coverage of heating, air conditioning, plumbing and the major appliances.
   
   
4. Carefully Review a Comparative Market Analysis, before making signing a purchase contract.
   Always have your real estate agent work up a CMA (comparative market analysis) on the home you are seriously considering. A CMA will show you what homes in the area have sold for in recent weeks. You should also get an idea of what homes are currently selling for in the area. After you’ve reviewed this information, you will have a much clearer picture on the value of the home. You will feel more confident in your purchase.
   
   
5. Always Request a Home Inspection.
   Your purchase agreement should always be contingent upon a home inspection. Before you completely fall in love with a home, ask your real estate agent to recommend a good professional home inspector. This will cost you, as the buyer, some additional money. However, it will most likely be the best investment you’ll make in the purchase process. A good home inspection will give you every detail about the current condition of the home. It will put you in a much stronger negotiating position as you find repairs that need to be made on the home. The time and money savings can be quite substantial. It will also strengthen your position with the lender.
   
   
6. Carefully Review your Current Housing Status with your Real Estate Agent.
   If you presently own a home, you need to get a CMA . Your real estate agent can easily give you this information. This will give you a pretty good idea of the present value of your home and want you can expect to net from its sale.
   
   If you’re renting a home, how long is your contract? Are there penalties for leaving? Are there any non-refundable clauses within your contract? If so, for what? You need to make sure you do your homework, so you know what you can do and when. This may significantly impact the timing and purchase of your home.
   
   
7. Carefully Select your Realtor.
   Working with a full time professional Realtor is a must. It will save you a lot of time and headaches. You need to ask a lot of questions to your potential agent concerning homes in the area. What have they sold for? How many homes are on the market in your price range? Who is a competent and competitive lender? What are current mortgage rates?
   
   Then, carefully listen to the questions your agent asks you. Is he/she asking the right kinds of questions to better understand your needs? Do you feel confident with the agent? Will he/she help get you the most home for your investment?