Buying a home is perhaps the most arduous, expensive and, ultimately, valuable acquisition you'll ever complete Just one mistake could mean disaster -- perhaps the worst mistake you'll ever make. In order to avoid titanic trip ups during such a trying transaction, RealEstate.com suggests buyers get to know the most common home buying blunders. To know them is to avoid them.
Going solo Buying a house is a complex transaction. It should be a team effort. You'll need a real estate agent, lender, inspector, insurer, perhaps a lawyer and other team members to help you through each step of the way. Team build before you start the search. ( I spend at least two hours reviewing the entire process with buyers prior to viewing any properties)
Love at first sight If you believe in fairy tales you probably shouldn't be buying a home. You won't live happily ever after if you emote your way through the home buying process. Your home should fit your real needs, not your yen for drama. Buy a home that fits your budget and your lifestyle. Be sure the home is in a community and neighborhood you desire. Visit neighborhoods several times before you buy to check out schools, noise and traffic patterns. (Check websites for crime statistics, school statics, Megan's law and any others you can find to help make your decision)
'Loanless' shopping Being pre-qualified gives you a general idea of how much you can afford to borrow. It's better to be pre-approved for a given loan. Sellers will take you more seriously. You'll stay on budget. (In the market, your offer will not even be considered by the seller unless you include a pre-approval letter)
Overbuying Home buyers buying more than they could truly afford, in part, led to the collapse of the housing market. Buy more than you can afford and your dream home will become the same nightmare. Analyze all your monthly costs including debts, food, transportation, entertainment, and savings. Your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Don't forget to budget closing costs (often two to five percent of the home's purchase price), plus moving, redecorating and maintenance. Look ahead and allow for increases in ongoing expenses such as utilities and taxes. (make sure to include HOA fees, Mello-Roos taxes and extra utilities that may not currently be part of your budget)
Misplaced trust You are engaged in what's likely your most valuable acquisition ever. It's a business transaction. Ask family, friends, co-workers, professionals and others you trust for referrals, but don't take their word for it. Vet your team members. ( interview at least three Realtors prior to making a decision on an agent)
Accepting oral agreements Get it in writing. The rate lock, the home inspection, disclosures, the contract. Always. Should a dispute arise, you've got the details documented.
Skipping the fine print Understand what's really in any document before picking up a pen. Get documents in advance, take time to read them and ask questions. Get copies of your mortgage and closing papers a few days ahead of closing.
Forgetting or betting on resale Avoid buying a home that costs 50 percent more than neighboring homes. Reconsider buying the most expensive home on the block. Neighbors' lower home values will weaken yours. Buy intending to flip your investment only to have the market fail means when it's time to sell your price may not cover your costs.
Making an unconditional offer Protect yourself with these contingencies:
• Mortgage financing. You may be preapproved but is the house? A formal appraisal confirms -- or not -- that there is sufficient value in the home to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.
• Inspection. Never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.
• Insurance. Confirm you can get adequate insurance coverage. In some areas, or following certain disasters, it can be difficult to get types of hazard insurance.
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For your Real Estate needs in North San Diego or Southwest Riverside County........
Make the Call to Hankins and Hall
Lela 760-591-0020 DRE#01407710
Steve 760-809-1637 DRE#01764446
Lela Hankins and Steve Hall are full time real estate professionals providing full service in real estate to Carlsbad, Encinitas, Oceanside, Vista, San Marcos, San Elijo Hills, Escondido,Fallbrook, Bonsall, Rancho Bernardo, Valley Center, Temecula, Red Hawk, and Murrieta
If you are in the market for a great lender that understands all loan types including FHA and VA, contact Brian Skaar at Brian Skaar.com
