When you are buying a home you should use caution before you sign a purchase agreement. Make sure you read over the entire purchase agreement to read exactly what is listed throughout and to see how exactly the wording reads for everything. Dont let a Realtor tell you that it is a standard purchase agreement and they are all the same. Sometimes the purchase agreement may require you to pay for the buyer and sellers title fees. Sometimes the purchase agreement may state that you will not receive the keys to the home for many days after you have closed on the home. There are many other items that the purchase agreement may or may not state that you should be very aware of. Consult your mortgage professional or possibly even an attorney to review the purchase agreement so that you know exactly what you should expect.

Be cautious if you decide to apply for a mortgage online. Many websites that appear to be mortgage lenders are actually lead suppliers that will take your private information and sell it to numerous mortgage companies. These companies may in turn flood you with phone calls and sales pitches from all over the country. To apply online safely, make sure the site is secure and make sure to read the companies privacy policy. The privacy policy should state specifically what will be done with your personal information. If the site is unsecured or has no privacy policy it may be best to apply elsewhere.

Make sure you get an inspection done prior to closing. Often, the property will have problems that you cannot see. If the findings of the inspection are poor, use this to renegotiate the terms of the deal or to void the contract altogether.

Although it can be more expensive, it is recommended to hire a professional real estate agent to help you look for a home. They are often familiar with the different elements to look at that may not be considered by anxious homebuyers. The additional cost at the purchase may save you tens of thousands of dollars in the life of your home ownership.

Make sure you are not making yourself "house rich but cash poor". There are many loan programs that might allow you to get into a home that costs more than you originally planned for. While this may be tempting, be sure you understand all of the terms of your loan and of your situation.

If it is an adjustable loan when will it adjust and by how much might it go up? Can you afford the paymnents if does adjust up? Is negative amortization allowed? Are you expecting your income to rise or stay relatively flat in the future?

Do not allow yourself to end up in a home you love but can't afford. Pick a home you like but that also is realistic for your financial situation.

 

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