When Buying a Home

Pitfall #1: Not being pre-approved.
The pre-approval process is more thorough than the pre-qualification process. The mortgage company does the work associated with obtaining full-approval, although an appraisal and title search are not conducted because there is no property yet identified to purchase.

Pitfall #2: Verbal agreements.
A written contract will almost always supercede a verbal contract. When buying or selling real estate, always get everything in writing.

Pitfall #3: Not getting a rate lock in writing.
You should always get a written statement detailing the interest rate, the length of the rate lock, and other particulars about the program.

Pitfall #4: Using a dual agent.
A dual real estate agent represents both a buyer and a seller in the same transaction. Sellers, however, want to receive the highest price, while buyers want to pay the lowest price. Since the seller usually pays the commission, a dual agent may negotiate harder for the seller than for the buyer. If you are a buyer, it is usually better to have your own agent represent you.

Pitfall #5: Not getting professional inspections.
Unless you are buying a new home with warranties on most equipment, it is wise to get property, roof, and termite inspections. In addition to making you aware of potential problems, inspection reports can be used as negotiating tools if repairs are needed.

Pitfall #6: Waiting to get home insurance.
Begin shopping for insurance as soon as your offer has been accepted by the seller. If you wait until the last minute to get insurance, you may find there is no time to compare insurance policies and costs.

Pitfall #7: Signing documents before reading them.
It is always a good policy to read any legal document before signing it. If possible, review beforehand the documents you will be signing at the closing. Have your questions answered in a timely manner. Remember that you will probably not have enough time at the closing to read each document.

Pitfall #8: Not having realistic moving plans.
Be prepared for a worst-case scenario by anticipating delays and allowing enough time to alter your moving plans, if needed. Arrange for movers to arrive a few days after your scheduled closing date in case your closing is delayed.