 4.
Not Knowing Exactly How Much You Can Afford.
How much home you can afford depends on how stable your finances
are, what types 'of properties you're considering, financing options
available to you, how good your credit is, etc. Be sure to consult
with your loan officer before you even start house hunting to insure
that you can buy the home that you want. If you're ready to buy
now, get pre-approved for your loan.
Pre-Approval helps save you money! Pre-approved buyers have 97%
of the purchasing power of cash buyer. Your real estate agent may
be able to negotiate anywhere: from a 1-1/2% to a 6-12% reduction
in price for you. It also helps you avoid the frustration of the
loan process. By completing the loan approval process before finding
a home, you'll already know you're approved for a loan so there's
little of the usual anxiety or frustration involved. And you'll
save time. Home shopping is easier with pre-approval because the
maximum loan amount and the type of refinancing are already determined
so you don't waste time looking at homes that are more or less expensive
than you can afford. And, once you've found a home, the transaction
is virtually done. Sellers are also more inclined to accept your
offer because they are dealing with a buyer with an approved loan.
 5.
Centering Negotiations On Price.
Many buyers feel as though they need to get the lowest price on
a home. Often, however, there are other concessions a seller can
make that are more beneficial to you. Your real estate agent can
negotiate on your behalf for a seller-paid buy down or closing costs,
credit for repairs, the washer & dryer, etc. All of these things
can save you money when buying a home. Be sure and discuss all your
options with your agent and ask him or her to help you evaluate
what's best for your specific situation.
6. Comparing Homes By Purchase Price.
Be sure to compare not only home prices but also the monthly costs
associated with those houses you're considering costs for utilities,
property taxes, homeowner's association dues, homeowner's insurance
premiums, maintenance, and other expenses can vary from house to
house. Estimate the average monthly cost of homeowners hip on every
home you see.
7. Failing To Plan For Home ownership.
"In survey after survey", writes Dr. Eldred, "renters
claim they can't afford to buy because they lack enough money for
a downpayment Often this belief reveals a lack of education about
low or no downpayment home finance possibilities. But, just as often,
it reveals a failure to plan. "A good loan officer can show
you how to payoff your bills, repair credit, save for a downpayment,
etc. Make home ownership your number one priority. Changing your
beliefs about whether you can buy or not is the first step"
to buying a home.
8. Changing Your Loan Status BEFORE Your Loan Closes.
Changing anything about your financial picture before your loan
closes can greatly impact your ability to qualify for financing.
It is absolutely critical to avoid changing jobs, switching banks,
moving money around, paying off bills, opening a new charge account
or making any major purchase (furniture, cars, appliances, etc.)
since doing so can delay.Your closing or prevent you from obtaining
a loan altogether!
9. Failing To Estimate Repair & Renovation Costs.
It's very important to make sure that professionals inspect your
new home so that you're fully aware of any problems the property
might have. Your agent can advise you on termite and roof reports,
structural inspections, and home inspections which cover major systems
(electrical, plumbing, etc.) in the house so that you are not hit
with big bills immediately after you move. Know what you are getting
into before you buy.
10. Failing To Compare Loan Programs & Costs.
Every borrower has different financial goals and needs. Making
a mistake on your home loan financing can cost you thousands of
dollars. A good loan officer can provide you with computerized costs
so you can choose the loan program that best suits you and your
families short and long tern financial goals.
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