Don't Make The Top Ten Mistakes When Buying A
Home
Author: Carl Hampton

If you're like most people, purchasing your home will be the
biggest investment you'll ever make. It's very important to
prepare as best you can. I will outline the Top Ten Mistakes
Made By Home Buyers. By keeping them in mind, you'll help
create a successful and much more enjoyable experience.

(1) Looking for a home without being pre-approved. As a
potential buyer competing for a property, you'll have a better
chance of getting your offer accepted by being as prepared as
possible. A complete stranger (buyer) is asking you (seller) to
take your property off the market for at least the next two to
three weeks while they apply for a loan. As the seller, lets
consider the type of buyer you'd prefer to deal with. Neither
pre-qualified nor pre-approved, this buyer provides no evidence
that they can afford to purchase your property. Pre-qualified
this buyer has met with a mortgage broker (or lender) and
discussed their situation. The buyer provided you with a letter
from the broker stating an opinion of what the buyer can afford.
Pre-approved this buyer has provided a broker written evidence
of income, expenses, assets, liabilities and credit. As a
result, much of the paperwork for this buyer's loan has been
completed. They provide you with a letter (pre-approval
certificate) from the lender. You're as certain as possible
that this buyer can close. As a potential buyer, you can see
that being pre-approved will give you the best chance of
getting your offer accepted.

(2) Making verbal agreements. If you're asked to sign a
document containing instructions contrary to your verbal
agreements--don't! For example, the seller verbally agrees to
include the washing machine in the sale, but the written
purchase contract excludes it. Do not expect oral agreements to
be enforceable.

(3) Choosing a lender just because they have the lowest rate.
While the interest rate is important, consider the total cost
of your loan including the APR , loan fees, discount and
origination points.

(4) Not receiving a Good Faith Estimate. Within three business
days after the broker or lender receives your loan application,
you must receive a written statement of fees associated with the
transaction. This is both the law and the best way to determine
what you'll pay for your loan.

(5) Not getting a rate lock in writing. When a mortgage company
tells you they have locked your rate, get a written statement
detailing the interest rate, the length of the rate lock, and
program details.

(6) Using a dual agent--i.e., an agent who represents the buyer
and the seller in the same transaction. Buyers and sellers have
opposing interests. Sellers want to receive the highest price,
buyers want to pay the lowest price. In the standard real
estate transaction, the seller pays the real estate commission.
When an agent represents both buyer and seller, the agent can
tend to negotiate more vigorously on behalf of the seller. As a
buyer, you're better off having an agent representing you
exclusively.

(7) Buying a home without professional inspections. Unless
you're buying a new home with warranties on most equipment,
it's highly recommended that you get property, roof and termite
inspections. Inspection reports are great negotiating tools when
asking the seller to make needed repairs.

(8) Not shopping for home insurance until you are ready to
close. Start shopping for insurance as soon as you have an
accepted offer. Many buyers wait until the last minute to get
insurance and do not have time to shop around.

(9) Signing documents without reading them. Whenever possible,
review in advance the documents you'll be signing. It's
unlikely that you'll have sufficient time to read all the
documents during the closing appointment.

(10) Not allowing for delays in the transaction. In a perfect
world, all real estate transactions close on time. In the world
we live in, transactions are often delayed a week or more.
Suppose you asked your landlord to terminate your lease the day
your purchase transaction was scheduled to close. A day or two
before your scheduled closing date, you discover your
transaction is delayed a week. In a perfect world, no one is
inconvenienced and your landlord is willing to work with you.
More likely, however, your landlord is inconvenienced and
angry. Terminate your lease one week after your real estate
transaction is scheduled to close. That way, if there is a
delay in closing your transaction, you have some leeway. This
approach might cost a little more, then again, it might not.

Have an opinion or a question you would like me to answer, then
write me! http://www.carlhampton.com


About The Author: "Your" Money Matters By Carl Hampton the
bestselling Author of "From Credit Despair To Credit
Millionaire" http://www.CarlHampton.com http://www.fcdtcm.com