-
Looking
for a House Without Getting Pre-approved by a Lender
- When you are pre-approved, you are effectively a cash buyer.
This makes it much easier to negotiate with the seller. 
Do
not mistake pre-approval with pre-qualification; pre-qualification
is only the first step in gaining pre-approval. Ask your banker
or realtor for details.
-
Failing
to Check Out the Local Area Thoroughly Before Buying
- How do traffic patterns change depending on the day, or even
the time of day? Are there any future developments in the works?
Is that nice greenspace down the road actually zoned for high-rise
development? Ask around - check it out first.
-
Making
an Offer Based Upon the Asking Price, Not the Actual Market
Value - Do your homework. What have similar
properties sold for in the immediate area? How long were they
on the market? How does this one compare? Is it over-priced,
under-priced, or fair value? Ask your realtor for an up-to-date
market summary.
-
Letting
"First Impressions" Affect Your Decision Too Much
- There are entire books written on how the first impression
of a home is the single most decisive factor affecting many
purchasers' decision to buy. Don't let bad decor or messy housekeeping
scare you away from a structurally solid home that meets all
your needs. Remember that you are buying the house, not the
furnishings.
-
Buying
a House Without a Professional Home Inspection
- When buying a house, consider getting a professional property
inspection. Not only will you know what you are buying, but
these reports will protect you from unforeseen nasty surprises
in both the short and long run.
-
Assuming
That the Bank's Quoted Mortgage Rates Are Written in Stone
- Like many industries, banks are experiencing increased competition
and are often willing to negotiate mortgage rates. Depending
upon the market and profit spreads, it is sometimes possible
to negotiate substantial savings. Ask your banker or realtor
for details.
-
Not
shopping for Home Insurance Until You Are Ready to Move
- If you wait until the last minute, you will be rushed in finding
insurance. Allow time to shop around and get the best deal.
-
Signing
Documents Without Reading Them - Do not wait
until the last minute before reading the documents; there probably
will not be time. Try to get copies of all documents early on
in your home search so that you can peruse them at your leisure.
-
Making
Verbal Agreements - Not only are they harder
to enforce, but any written contract you sign will override
a verbal agreement. Contract law says that verbal agreements
are not enforceable when they deal with Real Property. Always
get it in writing!
-
Not
Knowing Your Rights and Obligations - If you
do not know your rights, then you can be taken advantage of.
If you do not know your obligations, you may inadvertently cause
friction between yourself and those with whom you are about
to enter a contract. Both your realtor and lawyer are great
sources of information concerning this - make use of their expertise
and resources.
