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Thursday, April 29, 2010

Costly Mistakes Many Home Buyers Make…

CNNMoney.com had an interesting article titled “6 Biggest mistakes homebuyers make”  that outlined common issues that can cost buyers.

I have summarized several of the ones I see as key issues here here but please read the entire article if you are considering purchasing a house or condo.

1. Know your credit score. While you may still get the loan with a lower credit score,  i may end up costing you thousands of dollars in increased interest rates over the life of the loan.

2. Don't make a major purchase prior to closing.   Lenders continue to check credit scores (and employment) right up until the time of closing. Hold off on purchases and, do not apply for a credit card period!

3. Property inspections are critical.  It may only be three or four hundred dollars but if the inspector saves you from laying out five grand for a new AC next month, the money spent for the inspection is worth it!  Above all else, research your inspection company as they are not all equal!

4.Buying without contingencies is something probably more common with FSBO transactions as a real estate agent should know better!  Buyers must have an exit strategy if the inspection turns up problems, employment changes or the bank raises the interest rates.

There are many potential pitfalls to the home buying process.
A real estate agent who knows your local market can be a money saver...and as a buyer it costs you nothing!
Gary L. Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region.  

Whether your interest lies in a 55+ community such as Heritage Isle, a golf course community such as Baytree National Golf Links or water front, give me a call! at 321-693-3850 or email me.

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