The 5 Most Common Buyer Mistakes
- Not knowing how much they can afford before they 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.
- Not realizing in advance who the real estate agent represents. The prevailing form of representation is “Transaction Brokerage” where the agent can assist both parties in a transaction, although neither party exclusively or to the detriment of the other. Unless you have “Single Agency” where the agent represents either party exclusively, the assumption is “Transaction Brokerage”. Commissions are typically paid by the Seller in both forms of agency.
- Not realizing that the wrong mortgage can cost thousands of dollars in needless interest and taxes. One of the main considerations when selecting a mortgage program is how long do you expect to live in or own this property. 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 that the mortgage will have on your income and tax deductability.
- Not discovering hidden defects before they 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 and/or Home Warranty
- Not knowing how much adverse credit can affect their ability to buy or refinance a home.
- Before you buy a home, many of the problems on your credit history can be cleared up or even eliminated. Your mortgage professional can help you review and prepare your credit file in advance.
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