| Buyer Mistakes
Mortgage
Calculator | Buyer Tips | First-Time Buyers
Common Mistakes:
Exceeding you future limits. Always
think "What's the worst that can happen? What if I lose my job?" Your
financial standing may not be the same in the future, will it be better or
worse? make sure you buy a home that you will be able to keep.
Buying what you want instead of what you need. You may WANT
5 bedrooms but only NEED 4. You may WANT to live in the most expensive
neighborhood but you NEED a good school system. Try and maintain a
balance, it could save you money in the long run.
Failing to research the area. Nothing is worse than buying a
house and finding out that you could have done better. Check the prices of
recent sales in the area to ensure you don't pay too much. Visit the
neighborhood many times before you decide to buy, you don't want to move in a
find you have unruly neighbors. Research the cost of local taxes,
insurance, and maintenance. Knowing what to expect will allow you to budget and
buy the right home for you.
Not getting an inpependant inspection. This is important for
both your financial and emotional safety. Spending a few hundred dollars
in the beginning could save you thousands after you purchase.
Tolerating Poor Service from agents. In general, agents are
paid by the sellers, but there is no reason to put up with anything
that makes you feel uncomfortable. Find an agent who will sit down and
discuss your needs as a buyer, one who returns your phone calls, one who
actively works to find you your new home. You DO NOT have to tolerate rude
or poor service!
Mistakes Before Closing:
Making a major purchase. A new car would look great in the
drivway of your new home, but if you are depending on a mortgage to move in
you'd better wait till after closing to buy that car!
Changing jobs. Lenders like to see a consistant job history.
Forgetting to line up your hazard insurance. Not only will a
lender postpone closing without proof of insurance, you may get an unpleasant
surprise in the cost of insurance depending on the age of the home and the area
it's located. It's always better to be informed.
Ignoring Lender requirements. Make a list of what paperwork
you are expected to provide and take care of it as soon as possible. Closing on
a home is a lengthy process and you don't want to be the hold up!
Doing it all alone. Use a knowledgable agent, one who will
track the day to day details that are involved in closing on your home.
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