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Mistakes That Buyers Make
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Many times buyers get excited and begin to overlook or disregard important steps in the process.  Below are some common mistakes to avoid.

1.  Failing to have a plan

  One must consider all the factors involved with buying a home and moving.  If you are currently renting, what procedures must be followed and penalties incurred if you break your lease early?  If you currently own a home,    do you need to sell it before buying another one?  Plan first, then act.

2.  Not setting a budget.

Oftentimes buyers determine in their minds a budget.  However, there are expenses associated with owning a home that are usually forgotten.  With many homes there are homeowners association fees.  You may be billed for garbage and recycling collection.  The most neglected expense of a home are the escrow charges. 

3.  Looking for a home without being pre-approved.

Your offer becomes more attractive once you are pre-approved.  Pre-qualification only says that a lender has looked over your information and gives an estimation that you may be able to afford a certain amount.  On the other hand, a pre-approval indicates that the lender has verified your information and most of the paperwork has been completed.

4.  Not knowing what is on your credit report.

Be sure to obtain your credit report and clear up or eliminate as much as possible.  Credit bureaus are required        to investigate all questionable items on your report that you bring to their attention.

5.  Thinking, "I can`t afford a home."

Negative thinking results in negative actions.  With today`s creative financing products and unique home buyer programs, more people can afford a home than ever before.  Don`t count yourself out!!!

6.   Choosing a loan based solely on the interest rate.

The interest rate associated with a loan is a very important factor to consider, but not the only one.  Consider how much the loan will cost you.  Take into account the APR, loan fees, as well as discount and origination points.  A low rate could cost you thousands.  In addition, make sure that you have confidence that the company will deliver what has been promised.

7.   Never re-visiting the neighborhood.

It is important that you have an idea of what your "new" neighborhood is like at different times during the day.  If you look at the home during a weekday morning, you will have no idea how many children live in the neighborhood.  Also, you may learn that there is little activity during the day, but party central during the evening.

8.   Not planning for closing costs.

Within a few days before closing, you can request a "dummy" HUD-1 statement, which outlines how much money you need to bring with you to the closing.  Always plan for 3% of the sales price