You have, I'm sure, heard of people who ran into all sorts of trouble after they bought their home, troubles that could have been avoided. Here are 5 ways to help you not make some very costly mistakes.
#1 Hire A Real Estate Agent To Represent You
You don't save money by not having a real estate agent represent you. The sellers real estate agent gets the same percentage. If you don't have an agent represent you, the seller's agent just doesn't split the commission. Make sure you at least try to negotiate it down. Besides, an agent can help you pay less.
Contracts written buy sellers or their representatives favor sellers. A buyer's agent will make sure there isn't too much of that going on.
2 Use A Home Inspector
Unless you're a general contractor, an architect, or in a similar profession, always have a home inspector look at the the condominium you're considering buying. Recently gut-rehabbed condos must be inspected too. You're buying part of the building the condo's in.
Don't use a home inspector that your agent recommends if the agent gets paid only if there's a closing. Agents have influence over the home inspectors they work with often. Some home inspectors will overlook problems. That goes doubly for using a home inspector recommended by the seller or the seller's agent|.
3 Hire Your Own Appraiser
The appraiser who'll come out for the mortgage represents the lender's interests not yours. True, they're supposed to be impartial and give an unbiased opinion of value. And most do. Still, they represent the bank. Unless the lender specifically allows them to, they won't be able to tell you anything. And the value is of a given date. Which means that in the future (sometimes near) it could be more or less. Having your own appraiser means you know a lot about your condo, its building and neighborhood. And you would know long before the closing. Long before you invest money and emotion.
Not to mention that appraisers can do a lot more than just appraise. They can do all kind of research for you. They already do a lot of research (neighborhoods, property histories, zoning, market trends, etc.).
By the way, even if you pay for the appraisal, if the lender sent the appraiser, the appraiser works for the lender, can only talk to the lender (unless the lender specifically says they can talk to someone else).
4 Never Ever Not Use An Attorney
But not one that also represents the seller. But not one that the seller (or anyone on the seller's side) recommends. Sounds so commonsensical that I would not be using it as a tip here. Except that I've heard of people who got in trouble because they agreed to use an attorney that also represented the seller.
5 Start Looking For A Mortgage Broker Early
If you have to shop around for a mortgage broker, give yourself plenty of time to find a good one. And get pre-approved (not pre-qualified) as your offers would be taken more seriously. Having a good mortgage broker means you don't lose a good deal because the funds were not available on time. It also means you don't get the wrong loan.
Buying a house involves a lot of money. It's best you get all the help you can. So have all the right people on your team.
Author Resource:
Home owners insurance is key to your enjoyment of your home. I haven't mentionedI did not bring up house insurance in my article because making a mistake here, usually doesn't have irreparable consequences. That doesn't mean you shouldn't strive to get the right coverage for the right amount from the beginning. For that reason, the next time you Google 'house insurance or something similar, do look into it. The main mistake people make with property insurance is not that they pay too much but that they don't buy enough coverage.