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1 .
Looking for a home without being pre-approved.
Pre-approval and pre-qualification are two different things. During the
pre-qualification process, we ask you a few questions, then
hands you a "pre-qual" letter. The pre-approval process is much more
thorough.
During the pre-approval process, Realty West Side Corp. does virtually all
the work associated with obtaining full-approval. Since there is no
property yet identified to purchase, however, an appraisal and title
search aren't conducted.
When you're pre-approved, you have much more negotiating clout with the
seller. The seller knows you can close the transaction because a we
have carefully reviewed your income, assets, credit and other relevant
information. In some cases (multiple offers, for example), being
pre-approved can make the difference between buying and not buying a home. Also, you can save thousands of dollars as a result of being in a better
negotiating situation.
Most good Realtors® will not show you homes until you are pre-approved. They don't want to waste your, their, or the seller's time.
Nation's Standard Mortgage Corp. will help you become pre-approved at little or no
cost. They'll usually need to check your credit and verify your income and
assets.
2. Making verbal (oral) agreements!
If an agent tries to make you sign a written document that is contrary to
their verbal commitments, don't do it! For example, if the agent says the
washer will come with the home, but the contract says it will not--the
written contract will override the verbal contract. In fact, written
contracts almost always override verbal contracts. When buying or selling
real estate, abide by this maxim: Get it in writing!
3. Realty West Side Corp. will get the lowest rate and give
it to you
writing and that is a good-faith estimate.
While rate is important, you have to consider the overall cost of your
loan. Pay close attention to the APR, loan fees, discount and origination
points. Nation's Standard Mortgage Corp. includes discount and origination points in their
quoted points. Other lenders may only quote discount points, when in fact
there is an additional origination point (or fraction of a point).
This difference in the way points are sometime quoted is important to you. Once
we quote you all points, checking around with other lenders may disclose an
extra point, or fraction thereof, at a later time--an unwelcome surprise.
Within 3 working days after receipt of your completed loan application,
Realty West Side Corp. will provide you with a written good-faith
estimate (GFE) of closing costs. You may want to consider requesting a GFE
from a few lenders before submitting your application. With a few GFEs to
compare, you can get a feel for which lenders are more thorough, and you
can educate yourself regarding the costs associated with your transaction. The GFE with the highest costs may not indicate that a particular lender
is more expensive than another--in fact, they may be more diligent in
itemizing all fees.
The cost of the mortgage, however, shouldn't be your only criteria. There
is no substitute for asking family and friends for referrals and for
interviewing prospective mortgage companies. You must also feel
comfortable that the loan officer you are dealing with is committed to
your best interests and will deliver what they promise.
4. Choosing a lender because they are recommended by your Realtor®.
Your Realtor is not a financial expert. He or she may not know which loan
is best for you. Your Realtor® gets a commission only when your
transaction closes. As a result, the Realtor® may refer you to a lender
who will close your loan, but who may not have the best rates or fees.
Also, many Realtors® refer you to one of their friends in the loan
business--who also may not have the best rates or fees. Although most
Realtors® are professional and concerned about your best interests, you
should do your own homework.
We recommend shopping for a loan with at least three mortgage companies
before you make a decision. There are countless stories of consumers who
ended up paying higher rates, or got a loan that wasn't right for them,
because they blindly followed their Realtor's® advice.
5. Not getting a rate lock in writing.
When a mortgage company tells you they have locked your rate, get a
written statement detailing the interest rate, the length of the rate
lock, and other particulars about the program.
6. Using a dual agent (an agent who represents the buyer and seller in
the same transaction).
Buyers and sellers have opposing interests. Sellers want to receive the
highest price, buyers want to pay the lowest price. In most situations,
dual agents cannot be fair to both buyer and seller. Since the seller
usually pays the commission, the 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.
The only time you should consider using a dual agent, is when you can get
a price break (usually resulting from the dual agent lowering their
commission). In that case, proceed cautiously and do your homework!
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Unless you're buying a new home with warranties on most equipment, it is
highly recommended that you get property, roof and termite inspections.
These reports will give you a better picture of what you're buying.
Inspection reports are great negotiating tools when it comes to asking the
seller to make repairs. If a professional home inspector states that
certain repairs need to be made, the seller is more likely to agree to
making them.
If the seller agrees to make repairs, have your inspector verify the
completed work prior to close of escrow. Do not assume that everything
will be done as promised.
8. Not shopping for home insurance until you are ready to close.
Start shopping for insurance as soon as you have an accepted offer. Many
buyers wait until the last minute to get insurance and find they have no
time left to shop around.
9. Signing documents without reading them.
Do not sign documents in a hurry. As soon as possible, review the
documents you'll be signing at close of escrow--including a copy of all
loan documents. This way, you can review them and get your questions
answered in a timely manner. Do not expect to read all the documents
during the closing. There is rarely enough time to do that.
Our on site attorneys are there to assist you, they only represent one
side - the buyer!
10. Making moving plans that don't work.
You expect to move out of your current residence on Friday and into your
new residence over the weekend. Also on Friday, your lease terminates and
the movers are scheduled to appear. |
