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Office:
Home: Mobile: |
910.509.1934 800.533.1840 910.763.1080 910.233.4441
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Monday, September 08, 2008 |
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10 Ways to Avoid
"Rookie" Mistakes
- Don't rush into the transaction.
Buyers searching for homes in tight markets
may feel pressured to make an immediate
offer.
Solution: Become familiar
with the local market before making a
purchase offer.
- Ask questions.
First-time homebuyers, by definition, simply
don't have home buying experience. If you
don't know, ask. It may be uncomfortable,
but let's face it...a broker cannot answer
an unasked question.
- There's no such thing as the
"ideal" house. Many buyers run
themselves, not to mention their brokers,
ragged as they repeatedly dismiss homes that
meet most...but not all...of their
requirements. A buyer who turns down a house
that meets most, but not all, of their
criteria may miss out on the best available
property as well as good financing, should
market conditions change.
Solution: First-timers
should definitely view many different homes
as possible before making an offer. However,
they should definitely not
make an offer on the first home they
like...but also, and more importantly, they
should not hesitate to make an offer when
they find a home they love.
- Don't "Overbuy". Many
First-timers are routinely seduced into
becoming "house poor". That is, they spend
so much for a home that they must forego
annual vacations, restaurant meals and other
forms of entertainment.
Solution: Get Pre-approved
with a lender. This can help determine a
reasonable target price range and also
identify the mortgage programs which can
work best for you.
- Don't wait for that 20% down.
It's an admirable goal, but it's
often years in the future for many
first-time buyers. Instead -- especially in
markets with rising values -- buy now with
as little down as possible. Consider VA, FHA
and other loans with private mortgage
insurance (PMI).
- Be realistic. It's
tough to ignore a home's curb appeal, but
what about practical matters? Is there
enough space? Is there off-street parking?
Is the construction solid in good shape?
What about maintenance costs? How far to
work? It may seem like boring stuff...but
it's important none-the-less.
- Find out about zoning.
Is the property next door zoned for a
24-hour service station? Fire station? Super
Wal-Mart? Ask the broker about zoning for
the property and the surrounding area. Find
out before you buy. Otherwise you might be
stuck with the home of your dreams...right
next door to the new landfill.
- Don't ignore representation.
Chances are good that the seller has a
broker. Who's representing you?
Solution: A buyer broker,
an attorney, or both can give you needed
representation at the bargaining table.
- Don't Skip an inspection.
A professional home inspection is simply a
"must" whether you are buying an existing
home or a new one. Speak with inspectors
before you enter the marketplace to see how
they work, what they cost, and what they
recommend.
- Don't under-estimate closing
costs. Closing costs comprise much
of the expense when purchasing a home. In
many cases, the closing costs can be as much
(if not higher) than the down payment amount
being required.
Solution: Examine your good
faith estimate provided by your lender. Talk
to people who have recently been through the
buying process. Ask about fees you don't
understand. If some of the fees seem
excessive, ask the lender if they can be
waived (or at least reduced). Many lenders
will work with you to secure your business.
Just be realistic. If you feel that the
lender is "taking advantage" of you, consult
another lender.
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