Buyers

Home Buyer Blunders.

Don't lose a home by making these common homebuying mistakes.

Home Buyer Blunders

Avoid real estate regret.

Will you still love your new home tomorrow? Four tips to minimize buyer’s remorse.

Avoid real estate regret

So You Want To Buy A House!

Now what?…look, look, look, and get an energetic agent who will become your eyes and ears, your watchdog, your educator.

Buyer

Does the Agent Cost You Anything?

No! In almost all cases, you get all that help and education without plunking down a dime. The buyer’s agent is paid by the seller, when you buy your house, unless you pick a home that is “for sale by owner” or on a limited commission contract. If you come across one of these homes, your agent will work with you and the seller to be fair to both the buyer and the agent. Most importantly, you owe your agent your Buyer’s Loyalty. A good agent will protect your best interests and work hard to help you find you a property, without getting paid till you actually buy a house. Interview agents, then decide which one is good for you, and stick with that agent. Build rapport, let the agent really get to know you and your family, so that the agent understands your housing needs.

How Do You Find A House?

There are a lot of questions to be answered first:

  • What do you like about the home you are living in now?
  • What features would you like to duplicate if possible?
  • What must you avoid?

With your agent, you begin to explore neighborhoods to narrow down your search. You will also have worked with your lender to ARRANGE FINANCING IN ADVANCE. When you find your house, you will be ready to make the offer, without having to wait for the financing details. Your offer is much stronger with these details in place.

Your agent will be previewing homes to eliminate the ones that do not fit your criteria, then you will be shown the homes that do fit your criteria. If you spot an interesting house on your own, let the agent know immediately so she can research the property for you and look for red flags in the property details.

Keep An Open Mind!

Putting your first impressions aside, evaluate each property carefully. It’s important to look at the house, not the contents the current owners have. The house may be wonderful, but the furnishings may not suit your style.

Study the neighborhood. Check on schools if needed, traffic patterns at different times of the day, shopping, and anything else that may be important to your lifestyle.

Tell the agent what you are thinking about each property (without letting the current owners hear you!), so that the agent knows your impressions. This is especially important in this century. Many sellers have security systems which allow them to hear what is going on in the house. Do not talk about the house AT ALL, until you leave, or discuss things in whispers. You do not want to give away information which may be critical to your negotiation later.

And Have Fun!!!!

Homebuyer Do’s and Don’ts:

Recommended DO’S:

  • DO continue to make payments on time for current mortgages, cars, credit cards, etc.
  • DO paper trail, document, and explain any large or unusual deposits or withdrawals into accounts (checking, savings, stock, etc.).
  • DO keep pay stubs, bank statements, tax forms, etc., in case the lender needs to update the documentation prior to closing.
  • DO ask questions if something is unclear about the loan program, fees, and/or loan conditions.
  • DO let the loan officer or mortgage broker know if anything changes. For example; employment, income, assets, credit history, etc.
  • DO document that the earnest money deposit has cleared your account — obtain a copy of the cancelled check and/or the statement that reflects the funds have cleared.
  • DO lock-in the interest rate, have homeowner’s insurance agent information available and provide updated documentation (pay stubs, bank statements, etc.) in a timely manner so as not to delay the closing.

Recommended DON’TS:

  • DO NOT increase credit card balances and/or loan balances.
  • DO NOT apply for additional or new credit or put balances on a paid credit card.
  • DO NOT ignore late payment and/or collection notices that are received during the mortgage process.
  • DO NOT purchase anything that is “same as cash” — it will show on the credit report as a new debt.
  • DO NOT buy furniture, cars, or appliances on credit until after closing.
  • DO NOT lend money to family members, friends, etc. if it is needed for closing.
  • DO NOT store money at home, place it in a bank account so it can be documented as savings throughout the loan process and can qualify as assets on hand.
  • DO NOT have overdrafts on a checking account.
  • DO NOT quit or change jobs during the loan process.