How to avoid problems in a real estate transaction

Before considering buying your first home, it is important to understand the real estate process and how to avoid the common pitfalls that can cause your transaction to fail. There are many professionals involved in a real estate transaction; they include:

1. The real estate agent

2. The house inspector

3. The loan officers

4. The title company representative.

Each of these individuals will have an integral part in closing their transaction. It is important to make sure you choose competent and qualified people to represent you in the purchase of your home. The following list shows what each of the professionals involved in the purchase of your home is responsible for and how their experience and skills will help ensure that your transaction is closed in a timely manner.

o Real estate professional: the most important representative that a buyer or seller has in a real estate transaction is the real estate agent. Therefore, choosing an experienced and competent agent is essential to close your transaction. An expert agent will help you negotiate your offer, mediate any problems you encounter during the home inspection or house valuation, assist in the mortgage approval process and follow up with the title company to make sure that the closing documents are correct and are ready in time to close. If problems arise during the mortgage or the closing process, the experience of your real estate agent will probably be invaluable in following through with the transaction.

o Inspection of the home: Before buying a new home, it is always in the best interest of a buyer to request a complete home inspection. It is important that you choose an inspector with a license and experience. Ask your real estate agent for the names and phone numbers of the inspectors they have worked within the past. A home inspector will not only look for deficiencies in the home but will also be able to perform inspections, such as mold, radon, pests, lead-based paint, well (water) and septic tank, among others.

o Mortgage lender: Mortgage financing can be complicated, always choose an experienced and respected mortgage professional. Many people prefer to choose a lender with whom they can meet face to face. If you have problems with the mortgage, it is usually easier to solve them if you can go to their office and explain any problem. After completing the loan application, try to avoid any major financial changes. If you change your financial situation before closing the mortgage, it may result in a denial. In addition, there are many situations to avoid, including changing your job after your mortgage application, undocumented deposits (cash) and new debts.

o Title company: in most transactions, one of the real estate agents involved will choose the title and the deposit company. It is important to talk with your real estate agent about the title company you are using and contact the title company representative once your purchase agreement is accepted. They are responsible for ensuring that the closing documents are correct and that there are no liens or problems in the closing documents or the title. The title company will also check for pending liens on the property, bankruptcy problems if there are other property owners and any public record errors.

Once the purchase agreement has been accepted, it is important to understand that there are many steps that must be completed before the house is transferred to your name. It is in your best interest to refrain from notifying your landlord, changing utilities to your name for the new home or paying for a moving company before receiving notification of your final approval. It is important to have realistic expectations and patience when buying a house.

Keep in touch with your real estate agent to stay informed about the progress of your transaction and try to resolve any problems that arise immediately, so you can keep the transaction on track for closing on time. The success of your investment depends largely on the real estate agent you choose.

Follow these tips to narrow your search for a real estate agent, which will help you navigate easily in the process of selling or buying your home.