Many home buyers get caught up in the frenzy of emotions and excitement and forget to do the things that will protect them before, during, and after the buying process.
Real Estate Problems: Here Are A Few Mistakes To Avoid:
Not Establishing A True Budget Early In The Process Of Consideration A Home Purchase.
Not Making “Practice Payments” Equal to Your New Mortgage Payments Before Purchasing.
Not Getting Preapproved For A Mortgage Before Starting Your Home Search
Not Using An Experienced And Trusted Realtor To Help You With Your Search And Contract Negotiations.
Don’t Be Enticed By Offers For Mortgage Programs That Appear To Have A Lower Rate Or Payment Without Making An Informed Comparison.
Don’t Visit A Model Home Without Your Realtor. If You Do Not Have A Realtor Representing Your Interests, Do Not Sign Anything On The Spot. (the person that will greet you is working for the Builder, not you. You may be agreeing to things with no protection for you.)
Buying Furniture Or Establishing New Credit After You Have Been Approved. (this could invalidate your approval)
Making An Offer On A F.S.B.O. Without Full Knowledge Of All The Contingencies Needed In The Contract To Protect You
Making A Buying Decision Based On Emotion Vs. Information.
Not Having A Home Inspection – Even If It Is A Newly Constructed Home
Not Having Your Homeowner’s Insurance In Place At Least A Week Prior To Closing.
Using The Builder’s Or Seller’s Requested Title Company (this is like being a defendant at a trial and using the plaintiff’s attorney to represent you. There is usually a long-standing business relationship or friendship involved, which would likely cause the title company representative to be biased towards representing the interests of the Seller/Builder.)
Making Large Deposits Within 60 Days Of Closing. (it will trigger requests for documentation of the source of the funds)
Not Purchasing An “Owner’s Title Insurance Policy” At Closing -only $35.00 more. (this will save you 30% when you sell or refinance in the future)
Closing On Your Purchase Even When All Of The Repairs Or Punch List Items Have Not Been Satisfied. (once its done, its done. Therefore, make sure you have some kind of agreement signed in writing that these items must be completed with an escrow holdback)
Most home purchases can be very smooth, provided all parties handle their responsibilities in a timely manner, and everyone is acting with integrity.
Call us if you need help understanding any of these items.