The 5 biggest mistakes smart people make when buying a home.
#1 Not knowing how much you can afford before you make an offer
The easiest way to avoid this mistake is to get pre-approved for
a mortgage by a lender so you know in advance exactly how
much you can afford.
#2 Not realizing in advance whom the real estate agent represents.
Most people think that the agent they are working with is working for them.
But unless they are working as your buyer representative, they represent the seller.
#3 Not realizing that the wrong mortgage can cost thousands
of dollars in needless interest and taxes.
Check with your accountant before you make your final decision
on which mortgage you are going to choose. Your CPA will be
able to tell you what the long-term effects will be on your
income.
#4 Not discovering hidden defects before you buy a home.
One of the most expensive mistakes is also one of the easiest to avoid,
by having a professional pre-purchase home inspection.
#5 Not knowing how much credit can affect your ability to buy
or refinance a home.
Before you buy a home, many of the clouds on your credit history
can be cleared up or even eliminated. Your mortgage consultant
can help you review and prepare your credit file in advance.
The distinction between personal property and real property can
be the source of difficulties in a real estate transaction. The
purchase contract is normally written to include all real property;
that is, all aspects of the property that are fastened down or an
integral part of the structure. For example, this would include
light fixtures, drapery rods, attached mirrors, trees and shrubs
in the ground. It would not include potted plants, freestanding
refrigerators, washers and dryers, microwaves, book cases, swag
lamps, etc. If there is any uncertainty weather an item is includes
in the sale or not, it is best to be sure that the particular item
is mentioned in the purchased contract as being included or excluded. |
The buyer can generally be expected to pay for.
- title insurance
- escrow fee
- document preparation (if applicable)
- notary fees
- recording charges for all documents in buyer's name
- termite inspection (according to contract)
- tax pro ration (from date of acquisition)
- homeowner's transfer fee
- all new loan charges (except those required by lender for seller
to pay)
- interest on new loan from date of funding to 30 days prior to
first payment date
- assumption or charge of records fee for takeover of existing
loan
- beneficiary statement fee for assumption of existing loan
- inspection fees (roofing, property inspection, geological, etc.)
- home warranty (according to contract)
- city transfer or conveyance tax (according to contract)
- fire insurance premium for first year
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