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Costly Homebuyer Mistakes
We provide real estate services to buyers
and sellers in Pennsylvania (Berks County, Chester County, Delaware County,
Montgomery County, Philadelphia, Drexel Hill, Haverford Township, Havertown and Upper Darby) as well as in
New Jersey (Brigantine, Atlantic City, Ocean City, Camden County and Gloucester
County).
There are some simple steps that a home buyer often
misses when looking for their new home. Taking the time to consider these steps
can save you thousands of dollars, but more importantly, can smooth the process
of buying a new home, saving time and money, as well as alleviating stressful
situations in advance. Here we'll talk about loan pre-approval and
pre-qualification, competitive market analysis, etc.
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Begin
by being up front and honest with your REALTOR and lender about your credit history.
Your credit, whether good or bad, affects everything from your down payment to
your interest rates. Your REALTOR or a professional mortgage consultant can
often advise you as to how you can get credit problems cleared up or
completely eliminated from your credit report before you apply for
financing or make an offer on a new home.
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Getting
pre-qualified (or, better yet, preapproved) for a loan by a professional lender
before you begin your search for a new home will allow you to know in advance
exactly what kind, and how much, mortgage you can afford. This makes it
possible for you to make an offer on your new home with confidence that enough
funding is available.
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If
the seller does not offer a home warranty on the house you want, ask your
REALTOR to make it a part of the written offer that you make. A home warranty
can save you thousands of dollars in repairs, and can often be obtained for a
very nominal annual fee. A standard warranty covers the electrical, plumbing,
heating and air conditioning systems as well as major home appliances.
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Ask
your REALTOR for a market analysis of the home,
in comparison to similar homes in the neighborhood or throughout the city,
before you make an offer. A home is not just a place where you live – it is
also an investment. Take the time to view several homes before you make an
offer so you know exactly what is on the market. Be certain you are making a
wise investment.
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Make
your offer contingent upon a home inspection
and ask the seller to make the required repairs. Hire a professional to
inspect every aspect of the home thoroughly. This can save you thousands of
dollars in costly repairs and many headaches in the future. A good inspection
can also allow you to negotiate for any repairs prior to closing. If the
seller is not willing to make the necessary repairs, remind them that the
lender will also require the home to be in good condition before they make a
loan for the purchase.
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Take
into account your present homeowner or renter status.
If you already own a home and must sell it before you buy a new one, it is
best to get a REALTOR to do a complete market analysis on your present home.
This allows you to know how much you can sell your current home for before you
make an offer on a new one. If you are leasing or renting, the lease’s
expiration date will give you a timetable for your new purchase. Review this
with your REALTOR well in advance of when you want to move.
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Choose
your agent wisely. Working with a full-time professional real estate agent is a
must. Ask questions of your agent. Find out how knowledgeable he or she is
about houses currently for sale in your price range and also of houses that
have recently sold. Can your agent recommend a good lender that has the
reputation of excellent customer service and low rates? Does your agent ask
questions of you to have a full understanding of what you are looking for and
to help you get the most home for the money?
To receive
your FREE copy of Homebuyer's Handbook or Homeseller's Handbook, click here.
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