Buying Your First Home HTML version
Key Mistakes To Avoid
Many home buyers get caught up in the frenzy of emotions and excitement, and forget to
do the things that will protect them before, during, and after the buying process.
Here Are A Few Mistakes To Avoid:
Not Establishing A True Budget Early In The Process Of Consideration A Home Purchase.
Not Making “Practice Payments” Equal to Your New Mortgage Payments Before Purchasing.
Not Getting Preapproved For A Mortgage Before Starting Your Home Search
Not Using An Experienced And Trusted Realtor To Help You With Your Search And Contract
Don’t Be Enticed By Offers For Mortgage Programs That Appear To Have A Lower Rate Or Payment
Without Making An Informed Comparison.
Don’t Visit A Model Home Without Your Realtor. If You Do Not Have A Realtor Representing Your
Interests, Do Not Sign Anything On The Spot. (the person that will greet you is working for the Builder,
not you. You may be agreeing to things with no protection for you.)
Buying Furniture Or Establishing New Credit After You Have Been Approved. (this could invalidate
Making An Offer On A F.S.B.O. Without Full Knowledge Of All The Contingencies Needed In The
Contract To Protect You.
Making A Buying Decision Based On Emotion Vs. Information.
Not Having A Home Inspection – Even If It Is A Newly Constructed Home
Not Having Your Homeowner’s Insurance
In Place At Least A Week Prior To
Using The Builder’s Or Seller’s Requested Title Company (this is like being a defendant at a trial and
using the plaintiff’s attorney to represent you. There is usually a long-standing business relationship or
friendship involved, which would likely cause the title company representative to be biased towards
representing the interests of the Seller/Builder.)
Making Large Deposits Within 60 Days Of Closing. (it will trigger requests for documentation of the
source of the funds)
Not Purchasing An “Owner’s Title Insurance Policy” At Closing -only $35.00 more. (this will save
you 30% when you sell or refinance in the future)
Closing On Your Purchase Even When All Of The Repairs Or Punch List Items Have Not Been
Satisfied. (once its done, its done. Therefore, make sure you have some kind of agreement signed in
writing that these items must be completed with an escrow holdback)
Most home purchases can be very smooth, provided all parties handle their responsibilities in a timely
manner, and everyone is acting with integrity.
Call us if you need help understanding any of these items.