7 THINGS TO NEVER, EVER DO WHEN BUYING A HOME

7 THINGS TO NEVER,
EVER DO WHEN BUYING
A HOME
S O U R C E S :
https://www.realtor.com/advice/buy/things-to-never-dowhen-buying-home/
https://artesiantitle.com/

1. Don't shop for homes without an agent
By all means, start out by looking online at pictures of pretty houses—the more the better. It's a
vastly useful way to get the lay of the land. But when it comes time to get serious about buying a
house, you should find a professional to help you out.
Think of a buyer’s agent as a fairy godparent who’s here to turn your homeownership dreams into
reality. This person will guide you through every step of the home-buying process—from finding the
right property and writing a winning offer to negotiating home inspection repairs and sailing
through to closing.
2. Don't meet with just one mortgage lender
Once you’ve found a real estate agent, your next step should be to get pre-approved for a home loan.
To do that, you’ll have to meet with a mortgage lender and provide a good amount of paperwork,
including two years of W-2 forms, two years of tax returns, and proof of funds for the down payment
(among other documents).
That mountain of forms is one of the things that prompts many to meet with only one lender, says
Richard Redmond, a vice president at ACM Investor Services in Larkspur and author of “Mortgages:
The Insider's Guide.” That's a potentially big mistake!
Redmond recommends getting at least three quotes from different lenders so that you can survey
your options and find the best loan for you. One option you have when shopping around is to meet
with a mortgage broker—basically an intermediary who presents you with options from a variety of
lenders. No matter what, "you need to feel comfortable with the lender you choose," says Redmond.
"You want a lender who asks probing questions, listens to your answers, and presents you with
intelligent options."

3. Don't understate your budget
It might sound strange, but a number of home buyers
make the mistake of hiding their true budget from their
real estate agent.
“Some people are afraid that their agent is going to make
them buy the most expensive house that they can afford,
so they understate their price range,” says Daniel
Gyomory, a real estate agent in Northville, MI.
However, if you're not upfront with your agent about your
price range, you might miss out on a great house.
4. Don't hold out for the 'perfect' house
People throw around the words “dream home” a lot.
(Heck, we’re guilty of it.) However, here's the not-soharsh
truth: “There’s no such thing as a perfect house,”
says Gyomory. And that's why he has clients create a list
of “musts” and “wants” to identify their criteria and focus
on what really matters to them.
5. Don't make ridiculously lowball offers
You obviously want to get a bargain, but you could lose
out on a home that you love by making an absurdly low
offer. In fact, a recent survey from Inman found that 15%
of real estate agents say the third-largest mistake people
make when buying a home is offering too little for a
property (that’s behind not talking to a lender first and
waiting too long to make an offer).
6. Don't forget to budget for closing costs
The home seller will chip in some money at settlement; however, as the home buyer, you have the
(unfortunate) pleasure of shouldering the lion’s share of the closing costs. Your mortgage lender should
be able to give you a rough estimate of your closing costs once a seller accepts your offer, but as a rule
you can estimate that they typically total 2% to 7% of the home's purchase price. So on a $250,000 home,
your closing costs would amount to anywhere from $5,000 to $17,500.
7. Don't make big purchases before you close
Once you have found the right house and get the seller to accept your offer, your loan still needs to go
through underwriting in order for you to obtain the mortgage. One thing underwriters do is look at your
credit score from the three major credit bureaus—Experian, Equifax, and TransUnion—to make sure your
credit hasn’t changed since you were pre-approved.