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