Top Ten Real Estate Mistakes

It can be hard to buy a home — even if you aren’t a rookie
There is so much to know, learn and remember
Here are the top ten rookie mistakes that you shouldn’t make:
1) Rushing into buying a home
Buyers shopping in extremely tight markets often feel pressured
to make an immediate offer on a home Other buyers are just so
excited and ready that they just love the first house they see
You should take the time to become familiar with the local
market before you make an offer on a home
2) Not asking questions
It’s a big purchase Ask questions Yes, it can be a little
uncomfortable, but if you don’t ask, you may be surprised a
little later on And don’t believe everything you hear
Sometimes a seller may slip a few years of the age of the roof
or the air conditioning system Make sure that you have the
property professionally inspected
3) Searching for the dream home
It is really hard to find a home that will meet every
requirement you have A buyer who repeatedly turns down homes
that meets most of the criteria will annoy the agent and may be
losing out on the best available property and good financing
You should view different homes before you make an offer This
helps you understand the marketplace and local prices Don’t
jump on the first property you see, but don’t drag your feet
about what you love
4) Overbuying a home
You don’t want to be seduced into paying so much for a home that
you can no longer go on annual vacations, out to eat or to the
movies Work with your lender and your budget to find a
reasonable target price range and mortgage program that will
work best for you financially Then find the house that works
for your family
5) Saving a full 20% down
If you can, do it Putting all you can down is really the best
way to find reasonable financing out there But it isn’t always
reasonable to assume that 20% of the purchase price is just
sitting in savings, waiting You can buy with much less down
Consider VA, FHA and loans with private mortgage insurance, they
all come at less than 20% down
6) Getting swept away
You have to be realistic Think about practical matters such as
storage space, parking, structure, maintenance, commuting Don’t
just see the pretty flowers in front and the nice kitchen and be
sold Think about the everyday things If it doesn’t fit your
everyday life, for instance a 40 mile commute to work, you may
hate it after a while
7) Zoning issues ignorance
You never think about zoning Until a 7-11 moves in next door to
you Or a loud fire station Or a nuclear substation Ask about
the zoning of the property and surrounding properties
Turning down representation
The seller probably has a broker That broker isn’t working for
you You must have your own representation at the table A
buyer’s broker, your attorney or both can give you equality at
the bargaining table And a lot less stress
9) Hold the inspection
You have to have a professional home inspection You have to
You have to There is no exception Existing or new home, it
doesn’t matter Protect yourself from a bum deal by having the
home inspected
10) Underestimating closing costs
You need more than just a down payment Your lender can help you
determining your probable closing costs You don’t want any
financial surprises, so be prepared for these costs
Are there more mistakes people make? Yes Buying a home is a
complex process The best thing you can do is ask questions Ask
everyone about everything
Copyright 2006 1 Loans USA

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