How to Avoid Costly Mistakes

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Taking the time to consider these steps can save you thousands of dollars, but more importantly, can smooth the process of buying a new home, save you time and money, as well as alleviating stressful situations in advance.

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1. Begin by providing your credit history to a lender you trust. Your credit  affects everything from your down payment to your interest rates. Your loan officer can often advise you as to how you can get the best rates on the market.  

2. Getting pre-qualified for a loan by a professional lender before you begin your search for a new home will allow you to know in advance exactly what kind and how much mortgage you can afford. This makes it possible for you to    make an offer on your new home with confidence that enough funding is    available.  

3. If the seller does not offer a home warranty on the house you want, ask your realtor to make it a part of the written offer that you make. A home warranty can save you thousands of dollars in repairs, and can often be    obtained for a very nominal annual fee. A standard warranty covers the electrical, plumbing, heating and air conditioning systems as well as major home appliances.  

4. Ask your realtor for a market analysis of the home, in comparison to  similar homes in the neighborhood or throughout the city, before you make an offer. A home is not just a place where you live – it is also an    investment. Take the time to view several homes before you make an offer so you know exactly what is on the market. Be certain you are making a wise investment.  

5. Make your offer contingent upon a home inspection and ask the seller to make the required repairs. Hire a professional to inspect every aspect of  the home thoroughly. This can save you thousands of dollars in costly repairs and many headaches in the future. A good inspection can also allow you to negotiate for any repairs prior to closing. If the seller is not willing to make the necessary repairs, remind them that the lender will also    require the home to be in good condition before they make a loan for the purchase.  

6. Take into account your present homeowner or renter status. If you already own a home and must sell it before you buy a new one, it is best to get a  realtor to do a complete market analysis on your present home. This allows you to know how much you can sell your current home for before you make an offer on a new one. If you are leasing or renting, the lease’s expiration date will give you a timetable for your new purchase. Review this with your realtor well in advance of when you want to move.  

7. Choose your realtor wisely. Working with a full-time professional real estate realtor is a must. Ask questions of your realtor. Find out how knowledgeable he or she is about houses currently for sale in your price range and also of houses that have recently sold. Can your realtor recommend a good lender that has the reputation of excellent customer service and low rates? Does your realtor ask questions of you to have a full understanding of what you are looking for and to help you get the most home for the money?