BuyOwner & Potentially Save Thousands In Real Estate Commissions
There are several key factors to adhere to when purchasing a home buyowner
, and if you’re not careful to avoid these common mistakes your purchase may be delayed or even canceled. However, if you stick to the following rules you could have the keys to your dream home pretty quickly.
First, never make a major purchase of any big ticket item before applying for a mortgage loan, as it could damage your debt to income ratio. If you decide you can’t live without a new SUV you might have to wait on owning a home. The mortgage company just might determine that your automobile payment would hinder your ability to pay your mortgage. So, wait until after you get the house to spend money on big ticket items.
Second, when you purchase buyowner don’t change jobs before applying for a mortgage and closing on a home unless you absolutely have to. Mortgage lenders like to see a work history of 6 months to a year in the same job. So don’t job hop, but if you’re miserably unhappy with your current job look for something in the same field. The best option though is to tough it out until you close on the house and then start looking for another job.
Third, when you buyowner you should never give your earnest money to a seller (For Sale by Owner), as there is absolutely nothing to stop them from spending your money before the transaction goes through. And if the deal falls through you might end up fighting tooth and nail to get your deposit money back.
Instead, put the deposit into a trust account. It could be an attorney willing to hold the deposit for you until the transaction is finalized. Or, it could be with a Title Insurance Company, as they routinely hold money in trust and will ensure that it will be returned to you event the transaction falls through, subject to contractual language specifying these conditions of course.
Fourth, don’t let emotions guide you when purchasing buyowner. When you find your dream home you’ll discover that some sellers will be willing to fix problems with the home while others may not. So, don’t let things like this close the door on your dream home. Be prepared to negotiate, but not have everything your way.
On the other hand, don’t let a sense of loyalty to the owner, or desire for the home cause you to purchase something that you know will be costly to repair down the road. The objective is to stay practical and realistic during the home buying process.
Fifth, when purchasing buyowner do not get too personal with the seller. After all, buying a home is a business transaction, so it should be treated professionally. If you get into too many personal discussions you might say or do something that could be taken the wrong way. For example, you might joke about the obnoxious lime green colored walls in the den that turns out to be of sentimental value to the seller. Oops!
Getting too close to the seller could hurt the dynamics of the transaction. So, be friendly, but professional.
Sixth, another issue that cannot be ignored when purchasing buyowner are deed restrictions, which are rules that govern what you can and cannot do with the property. If it has always been your dream to have a hot tub in your backyard, you want to make sure that you don’t buy a home in a subdivision that won’t allow it because of deed restrictions.
Finally, home inspections are an important part of the equation when buying buyowner. Ask the seller to give you one, then find out when the inspection will be performed. When the inspection occurs varies state to state. Sometimes the inspection will be right before the contract is signed and other times, they are performed right after an offer is made. Whenever it’s done try to be there so that you can hear first hand what the issues are with the home.
These are some of the most common mistakes home buyers make. However, educating yourself about the process will ensure a smoother transaction and make for a fun housewarming party.
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