Three Important Points to Remember When Purchasing a Home

Ways to eliminate mistakes

Before you enter into a real estate contract, make sure you take the time upfront to check everything and make the effort to get good advice. Once the sale is completed it is too late to fix any mistakes. Checking carefully at the beginning of a transaction can save a lot of pain down the road.

First error: Not listening to expert advice

New home buyers often have a tendency to try and do things on their own. With all the information on the internet it is easy to find information and that often makes people feel that they know more than they really do. Too many home buyers try and buy with out using a Realtor, and often try and save money by not hiring an attorney. These can be short sighted and expensive mistakes. A Realtor s service is paid by the seller, and a good agent will help you find a home that not only meets your current needs, and will be able to help you see things you might otherwise ignore. Attorneys are really a cheap form of insurance. In most transactions nothing major goes wrong. But if there is a problem, the attorney is there to protect your interests and they will save you money in the long run.

Second Error: Changing your Financial Scenario before Closing

When you are pre-approved for a mortgage, we are basing the approval on your current financial position. One mistake I see on a regular basis is with home buyers who go through the loan approval, and then buy a new car or take n another big payment before they buy their new home. This can be a big mistake because we are looking at your total debt ratio, and if you are taking on new debt, that means you may not be able to afford the housing payment. This doesn t mean you can t buy a new car, but make sure you talk with you mortgage loan officer first. They can see how the new payment will affect your mortgage qualification, and if it makes sense for you to buy. You also ned to run a budget so that you know you can comfortably afford all your paymens.

Third Error: Picking the wrong home for your needs

Buying a home is an emotional experience. I know that of the houses I have bought, we knew it was the right one as soon as we walked through the door. But sometimes the home that emotionally calls to you, isn t the right home at all. If you have ever been to a model home in a new construction community, you ve probably been amazed at how good the homes looked. But if you looked at similar homes in the same subdivision, the reality is usually much different. You can change the appearance of a home and make it look larger than it is by using mirrors and storing away items you would normally live with. Before you start shopping for a home, make a priority list of all the features you want in a home. This should include the location (is it close to work, and shopping?) the size and the amenities. Home buying is an emotional lift, but balance your emotion by making sure that the home fits your real needs and wants.

A similar mistake is buying more than you can really afford. Make sure you budget what is affordable for you before you start looking at homes. There may be payments you make regularly which don t figure into your mortgage qualification. If you want to maintain your life style, don t over buy a home.