Buying a Home – 4 Common Errors Homebuyers Should Avoid:
• Unrealistic timetables: With a regular sale, assuming you’re preapproved and it’s straightforward, you can probably do it in 30 days, but 45 is more common, especially with FHA and VA loans.Even better, be prepared for 45 to 60 days. If it’s a foreclosure property, there may be lien and title issues that could cause delays stretching that to 60 to 75 days, even up to 90 days. And for short sales, that timeframe will greatly depend on whether the lenders have already agreed to accepting a short sale and agreed on a preset price; depending on the details, it could take anywhere from 45 days up to nine months. Things that might cause delays are 2nd and 3rd mortgages previously not disclosed and delays in bank paperwork and procedures on the parts of the lenders.
• Ignorance with financing: Homebuyers should learn more about the mortgage process, know the terminology and ask the correct questions when shopping around for the best mortgage rate.
Unless you know him or her well, never tell a lender, “This is my first time, and I don’t know how it all works — and I need you to guide me through the process. It’s like putting a sign on your forehead that says, ‘Charge me more.’
•“Trash talking” when negotiating: If the home is painted pink and the buyer insists it needs to be repainted, he could risk jeopardizing negotiations. Instead, when making an offer, buyers should stress what they like about the home. A price reduction should be talked about in terms of what the home is worth to that buyer, he says.
• Getting in over your head: It may be tempting to stretch their budget in order to get the house of their dreams, but don’t stretch yourself so thin that they miss out on having a reserve fund in case they need to make any unexpected repairs once they move in. In most homeownership situations, there are going to be some unforeseen circumstances, so you want to make sure you have some funds behind you.