Six Buyer Mistakes That Can Cost Big Bucks

Six Buyer Mistakes That Can Cost Big Bucks

From the moment you make application for a mortgage until the celebration of receiving keys to your new home, there are a lot of land mines that can sabotage you.  Most of them are innocent mistakes and even the best agent can’t prevent you from making some of them. 

Here are a few common mistakes made by buyers:

1. Choosing the wrong agent or not making a choice when looking:  Many buyers think that all agents are alike.  Nothing could be further from the truth.  Your future home is a huge investment.  Rather than spending time looking at homes with multiple agents, spend time interviewing agents – then tour homes with the agent you find to be knowledgeable and capable of protecting your best interests.

2. Looking at home before qualifying for a mortgage:  This common practice is truly “getting the cart before the horse.”  It is so easy to look at homes on the internet and dreaming of being a homeowner.  Avoid disappointment by getting your agent to refer you to a mortgage company they trust.  Many buyers are disappointed when they get prequalified by a mortgage company found online that does not have a relationship with your agent.

3. Failing to separate documents when one spouse is borrower:  These days many are purchasing a home where one spouse is getting the mortgage.  In those cases, the earnest money check must be written by the borrower.  There are other rules that need to be considered.  Make sure that you follow the criteria outlined by the mortgage company because small things make a big difference in mortgage applications these days.

4. Only the borrower coming to closing:  Although the couple may have only one borrower, both must attend the closing to sign papers.  The mortgage company needs the non-borrowing spouse to acknowledge their awareness of the loan.

5. Inadequate or no inspections:  Even when you think you are purchasing the home “as is”, you need to get a thorough inspection by a qualified and licensed inspector.  Corporate sellers like relocation companies will often deny the option period outlined in Texas promulgated contracts.  Still, you need to make sure you are fully aware of the condition of the property and exercise your ability to cancel the contract if important things change your desire to purchase.

6. Final walk-through inspection:  When the day of closing arrives, you want to get to the title company, sign papers, get the mortgage funded and be handed the keys to your new home.  It seems to be the only important thing…but it is not.

   Walking through the home after the seller has moved out is extremely important.  It is usually scheduled the day of the closing and the seller should be completely out of the house.  You want to be assured that the home is in the same condition as when you agreed to purchase. 

   It is not time to nitpick about nail holes or carpet imperfections.  Instead, you want to make sure all items listed as part of the real estate remain and all the things the seller may not want to bother with are removed.  The best time to address those issues is before the seller receives funds at closing.