1. Not Getting Mortgage Preapproval…Preapproval is fast, easy and free. Your offer on a house will have more credibility with the Seller. You will be more confident in knowing for sure you are approved.
2. Determine your long term goals and expected length of time before you want to sell…if you plan on selling after two or three years think about what future buyers will be looking for. For example, if you buy a NEW home in an area where new homes will be available for the same buyer…that could be trouble! It could cost you thousands of dollars, or a longer time to sell your home.
3. Buying the Wrong Home…What are you looking for in a home? A simple enough question, but the answer can be quite complex. More than one buyer has been swept up in the emotion and excitement of the buying process only to find themselves the owner of a home that is either too big, too small, a longer commute, more fix-ups than desired. Take time upfront to clearly define what you want and let your agent know your goals and expectations.
4. Bidding Blind… What price should you offer when you make an offer on a home? Is the Seller’s asking price too high, or is it a great deal? This critical decision should be based on a Market Analysis, and the advice of an experienced Agent. There are many factors, including the type of loan the buyer is using, which influence a successful negotiation.
5. Negotiate the “Must Be Repaired” items in the initial offer…Some repairs are very expensive, like Heating & Cooling Systems, and need to be addressed early in the process. Don’t waste time and money negotiating and inspecting a home hoping the owner will agree to complete major repairs.
6. Undisclosed Items Needing Repair…Don’t expect every seller to own up to every physical problem with their home. Ensure that you conduct a thorough inspection of the home early in the process. Consider hiring an independent inspector to objectively view the home inside and out.
7. Complete Home Inspections Early in the Process…your contract needs to allow enough time (Termination Option Period) to complete your independent home inspection AND negotiate additional repairs the seller will complete. Don’t wait until the last minute, then hand the seller a Contract Amendment with a long list of repairs to be completed.
8. Contract Misses…if the Seller fails to comply to the letter of the contract by neglecting to attend to some repair issues, or changing the spirit of the agreement in some way, this could delay the final closing. Prepare a list of agreed issues, walk through them, and check on them well before the closing date.
9. Rushing the Closing…Take your time during this critical part of the process. Make sure the closing documents perfectly reflect your understanding of the transaction. Is the interest rate right? Is everything covered?
10. Doing it on your own without an Agent…picking an agent is one of those critical issues that can cost or save you thousands of dollars! Not all agents are the same. It is a much tougher real estate market than it was a decade ago. Receiving advice and opinions from well meaning friends, family members or even agents who are not currently successfully closing transactions can be a very costly mistake.
For more information on your home loan, please contact a LegacyCare loan consultant at 817-860-3232 or you may email us at Joy.Bates@myccmortgage.com.