| If you're like most people, purchasing
| |
| | your loan.
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| your home will be the biggest investment
| |
| | (5) Not getting a rate lock in writing.
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| you'll ever make. It's very important to
| |
| | When a mortgage company tells you they
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| prepare as best you can. I will outline
| |
| | have locked your rate, get a written
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| the Top Ten Mistakes Made By Home Buyers.
| |
| | statement detailing the interest rate,
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| By keeping them in mind, you'll help
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| | the length of the rate lock, and program
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| create a successful and much more
| |
| | details.
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| enjoyable experience.
| |
| | (6) Using a dual agent--i.e., an agent
|
| (1) Looking for a home without being
| |
| | who represents the buyer and the seller
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| pre-approved. As a potential buyer
| |
| | in the same transaction. Buyers and
|
| competing for a property, you'll have a
| |
| | sellers have opposing interests. Sellers
|
| better chance of getting your offer
| |
| | want to receive the highest price, buyers
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| accepted by being as prepared as
| |
| | want to pay the lowest price. In the
|
| possible. A complete stranger (buyer) is
| |
| | standard real estate transaction, the
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| asking you (seller) to take your property
| |
| | seller pays the real estate commission.
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| off the market for at least the next two
| |
| | When an agent represents both buyer and
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| to three weeks while they apply for a
| |
| | seller, the agent can tend to negotiate
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| loan. As the seller, lets consider the
| |
| | more vigorously on behalf of the seller.
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| type of buyer you'd prefer to deal with.
| |
| | As a buyer, you're better off having an
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| Neither pre-qualified nor pre-approved,
| |
| | agent representing you exclusively.
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| this buyer provides no evidence that they
| |
| | (7) Buying a home without professional
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| can afford to purchase your property.
| |
| | inspections. Unless you're buying a new
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| Pre-qualified this buyer has met with a
| |
| | home with warranties on most equipment,
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| mortgage broker (or lender) and discussed
| |
| | it's highly recommended that you get
|
| their situation. The buyer provided you
| |
| | property, roof and termite inspections.
|
| with a letter from the broker stating an
| |
| | Inspection reports are great negotiating
|
| opinion of what the buyer can afford.
| |
| | tools when asking the seller to make
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| Pre-approved this buyer has provided a
| |
| | needed repairs.
|
| broker written evidence of income,
| |
| | (8) Not shopping for home insurance until
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| expenses, assets, liabilities and credit.
| |
| | you are ready to close. Start shopping
|
| As a result, much of the paperwork for
| |
| | for insurance as soon as you have an
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| this buyer's loan has been completed.
| |
| | accepted offer. Many buyers wait until
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| They provide you with a letter
| |
| | the last minute to get insurance and do
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| (pre-approval certificate) from the
| |
| | not have time to shop around.
|
| lender. You're as certain as possible
| |
| | (9) Signing documents without reading
|
| that this buyer can close. As a potential
| |
| | them. Whenever possible, review in
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| buyer, you can see that being
| |
| | advance the documents you'll be signing.
|
| pre-approved will give you the best
| |
| | It's unlikely that you'll have sufficient
|
| chance of getting your offer accepted.
| |
| | time to read all the documents during the
|
| (2) Making verbal agreements. If you're
| |
| | closing appointment.
|
| asked to sign a document containing
| |
| | (10) Not allowing for delays in the
|
| instructions contrary to your verbal
| |
| | transaction. In a perfect world, all real
|
| agreements--don't! For example, the
| |
| | estate transactions close on time. In the
|
| seller verbally agrees to include the
| |
| | world we live in, transactions are often
|
| washing machine in the sale, but the
| |
| | delayed a week or more. Suppose you asked
|
| written purchase contract excludes it. Do
| |
| | your landlord to terminate your lease the
|
| not expect oral agreements to be
| |
| | day your purchase transaction was
|
| enforceable.
| |
| | scheduled to close. A day or two before
|
| (3) Choosing a lender just because they
| |
| | your scheduled closing date, you discover
|
| have the lowest rate. While the interest
| |
| | your transaction is delayed a week. In a
|
| rate is important, consider the total
| |
| | perfect world, no one is inconvenienced
|
| cost of your loan including the APR ,
| |
| | and your landlord is willing to work with
|
| loan fees, discount and origination
| |
| | you. More likely, however, your landlord
|
| points.
| |
| | is inconvenienced and angry. Terminate
|
| (4) Not receiving a Good Faith Estimate.
| |
| | your lease one week after your real
|
| Within three business days after the
| |
| | estate transaction is scheduled to close.
|
| broker or lender receives your loan
| |
| | That way, if there is a delay in closing
|
| application, you must receive a written
| |
| | your transaction, you have some leeway.
|
| statement of fees associated with the
| |
| | This approach might cost a little more,
|
| transaction. This is both the law and the
| |
| | then again, it might not.
|
| best way to determine what you'll pay for
| |
| |
|
