| "A systemized approach to the home buying | | | | marks your boundaries. If the survey is not current, |
| process can help you steer clear of these common | | | | you may find that there are structural changes that |
| traps, allowing you to not only cut costs, but also | | | | are not shown (e.g. additions to the house, a new |
| secure the home that’s best for you." | | | | swimming pool, a neighbor’s new fence which |
| No matter which way you look at it, buying a home | | | | is extending a boundary line, etc.). Be very clear on |
| is a major investment. But for many homebuyers, it | | | | these issues. |
| can be an even more expensive process than it | | | | 5. Undisclosed Fix-ups |
| needs to be since they fall prey to at least a few of | | | | Don’t expect every seller to own up to every |
| the many common and costly mistakes which trap | | | | physical detail that will need to be attended to. Both |
| them into either:paying too much for the home they | | | | you and the seller are out to maximize your |
| want, orlosing their dream home to another buyer or, | | | | investment. Ensure that you conduct a thorough |
| (worse) buying the wrong home for their needs. | | | | inspection of the home early in the process. Consider |
| A systemized approach to the home buying process | | | | hiring an independent inspector to objectively view |
| can help you steer clear of these common traps, | | | | the home inside and out, and make the final contract |
| allowing you to not only cut costs, but also secure | | | | contingent upon this inspector’s report. This |
| the home that’s best for you. | | | | inspector should be able to give you a report of any |
| 9 Buyer Traps | | | | item that needs to be fixed with associated, |
| This important report discusses the 9 most common | | | | approximate cost. |
| and costly homebuyer traps, how to identify them, | | | | 6. Not Getting Mortgage Pre-approval |
| and what you can do to avoid them: | | | | Pre-approval is fast, easy and free. When you have a |
| 1. Bidding Blind | | | | pre-approved mortgage, you can shop for your |
| What price should you offer when you bid on a | | | | home with a greater sense of freedom and security, |
| home? Is the seller’s asking price too high, or | | | | knowing that the money will be there when you find |
| does it represent a great deal. If you fail to research | | | | the home of your dreams. |
| the market in order to understand what comparable | | | | 7. Contract Misses |
| homes are selling for, making your offer would be like | | | | If a seller fails to comply to the letter of the |
| bidding blind. Without this knowledge of market value, | | | | contract by neglecting to attend to some repair |
| you could easily bid too much, or fail to make a | | | | issues, or changing the spirit of the agreement in |
| competitive offer at all on an excellent value. | | | | some way, this could delay the final closing and |
| 2. Buying the Wrong Home | | | | settlement. Agree ahead of time on a dollar amount |
| What are you looking for in a home? A simple | | | | for an escrow fund to cover items that the seller |
| enough question, but the answer can be quite | | | | fails to follow through on. Prepare a list of agreed |
| complex. More often than not, buyers have been | | | | issues, walk through them, and check them off one |
| swept up in the emotion and excitement of the | | | | by one. |
| buying process only to find themselves the owner of | | | | 8. Hidden Costs |
| a home that is either too big or too small. Maybe | | | | Make sure you identify and uncover all costs - large |
| they’re stuck with a longer than desired | | | | and small - far enough ahead of time. When a |
| commute to work, or a dozen more fix-ups than | | | | transaction closes, you will sometimes find fees for |
| they really want to deal with now that the | | | | this or that sneaking through after the |
| excitement has died down. Take the time upfront to | | | | “sub”-total fees such as loan |
| clearly define your wants and needs. Put it in writing | | | | disbursement charges, underwriting fees etc. |
| and then use it as a yard stick with which to | | | | Understand these in advance by having your lender |
| measure every home you look at. | | | | project total charges for you in writing. |
| 3. Unclear Title | | | | 9. Rushing the Closing |
| Make sure very early on in the negotiation that you | | | | Take your time during this critical part of the |
| will own your new home free and clear by having a | | | | process, and insist on seeing all paperwork the day |
| title search completed. The last thing you want to | | | | before you sign. Make sure this documentation |
| discover when you’re in the back stretch of a | | | | perfectly reflects your understanding of the |
| transaction is that there are encumbrances on the | | | | transaction, and that nothing has been added or |
| property such as tax liens, undisclosed owners, | | | | subtracted. Is the interest rate right? Is everything |
| easements, leases or the like. | | | | covered? If you rush this process on the day of |
| 4. Inaccurate Survey | | | | closing, you may run into a last minute snag that you |
| As part of your offer to purchase, make sure you | | | | can’t fix without compromising the terms of |
| request an updated property survey which clearly | | | | the deal, the financing, or even the sale itself. |