| 1. |
Not getting pre-approved for your mortgage.
Today you can get an approval within 24 hours and you can shop knowing that you have your mortgage. |
| 2. |
Choosing a lender just because they advertise the lowest rate.
There are many other costs that go into a mortgage and they must be disclosed in your good faith estimate, and your Truth and Lending Statement which has your Annual Percentage Rate. |
| 3. |
Choosing a lender just because your Realtor recommended them.
Your realtor knows real estate but they are not experts in mortgages. They may not know what type of loan is best for you, they only get paid if the house sells. |
| 4. |
Not putting an agreement in writing.
Never rely on a verbal agreement from the seller, your realtor or the Mortgage Company until you have them in writing. It is always easer to settle any misunderstanding if it is in writing. |
| 5. |
Not getting a rate lock in writing.
When the Mortgage Company tells you that your rate is locked, get it in writing. It should list the interest rate, the length of the rate lock and what type of loan you are locking into. |
| 6. |
Using a dual agent, i.e. an agent who represents the buyer and the seller on the same transaction.
Buyers and sellers are looking for two different things our of the transaction. A dual agent represents the sellers more strongly then the buyers. |
| 7. |
Buying a house without a professional inspection.
Unless you are buying a house with a warranty on most equipment it is highly recommended that you get a home inspection. You are paying a few dollars for piece of mind. Make sure you hire someone who knows what to look for. |
| 8. |
Not shopping for home insurance until you are getting close to settlement.
The more time you have to shop and compare the better deal you are able to get. If you have not had homeowners insurance before, it will take you a little time to understand all the coverages.
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| 9. |
Making your moving plans at the last minute.
If you do not plan ahead you may not be able to get the moving company or U-haul and friends to help you move. Your choses will be limited. |
| 10. |
Signing documents without reading them.
DO NOT SIGN ANY DOCUMENTS WITH OUT FIRST READING THEM AND ASKING QUESTIONS. THIS IS THE BIGGEST MISTAKE ANY WOULD BE HOMEOWNER MAKES! |
