SIX BUYER MISTAKES AND HOW TO AVOID THEM

As you begin your home-shopping process, it would be nice to know what mistakes others have made so you don’t make those same mistakes. Knowing can save you several thousand dollars.

Here are six mistakes commonly made and how to avoid them. It is important that you develop a systemized approach to searching for your dream home so you may stay away from these costly mistakes.

1.  Not Working With A REALTOR®. A REALTOR® is a professional who knows the market in your area of interest and cooperates with other professionals who will all contribute in your home purchase. When you decide to submit an offer, the REALTOR® will: negotiate on your behalf to get you the best deal possible; deposit the earnest money with a title company; arrange for any termite and home inspections; review the seller’s disclosure statement that declares whether or not there is anything wrong with the home; advise and update you as milestones are met.
   
   
2.  Not Pre-Approved By A lender. While you may think you know how much home you can afford, until you see your lender, you could be wasting your time. You may be able to afford much more of a home, or you may not be able to afford as much as you think. It would be a shame if the home you really want is available and you decide it is out of your price range, so you don’t even look at it. When, in fact, had you visited your lender for pre-approval, you might have discovered you could afford it.
   
   
3.  Not Having A Professional Home Inspection. While most home sellers will let you know what known defects in the home exist, they really don’t know if anything is wrong. Most homeowners are not qualified to make that determination.
   
   You want the peace of mind that comes with a clean report from a qualified, professional home inspector. The same is true of a termite inspection. In some states, once the transaction is closed, the buyer has no recourse to be compensated by the seller for any defects unless it can be proved that the seller willfully misled you.
   
   
4.  Buying The Wrong Home. Sometimes, a buyer gets caught up in the home-buying process and lets emotions get in the way of good judgment. When that happens you can find yourself the owner of a house that is either too big, too small or in the wrong location. Stick with your game plan. After you have clearly identified in writing your wants and needs, use that list to guide you in the process.
   
   
5.  Not Looking At All Mortgage Options. The mortgage business is very competitive. Lenders come up with many ways to get your business. The option that appears attractive may not be the best one for you. Have the lender explain in detail all mortgage options.
   
   
6.  Inaccurate Survey. If you are paying cash, you might decide to save as much as you can on closing costs. You might be tempted to rely on an old survey the seller has. This could be a costly mistake. A professional survey will reveal any encroachments on the property and any possible boundary line disputes. It will also identify any structural changes to the home that were added and not previously recorded.