The home buying process is one of the most stressful and time consuming transactions a person goes through. There is a good reason for this as for nearly everyone, a home will be both their largest purchase and their largest single investment in their lifetime. Before you start the home buying process, it's important to understand the possible pitfalls and how to avoid them.
Financing Falling Apart
Many deals fall apart at the last minute due to a lack of financing. This can either be due to a failure to qualify for a mortgage or a failure to come up with a down payment.
With mortgages, only accept offers from buyers who are preapproved as a seller, and when buying yourself, get a preapproval from your credit union before making an offer. In competitive markets, cash offers are often taken over higher offers with preapproved mortgages to avoid any possibility of a deal falling through.
For down payments, many buyers count on their current home selling to cover it. When a down payment isn't coming from cash already on hand, many banks offer a special short-term loan to cover it while the other sale clears.
Disagreements Over What's Included
An argument over included appliances or fixtures can torpedo a deal as it often quickly leads to accusations of dishonesty. If you care about something in the house as a buyer, make sure it's in the contract from the beginning. As a seller, spell out what stays and what goes in your initial listing.
Termites and Other Unexpected Damage
Even after you've completed your purchase, the worries aren't over. You may move in and get settled only to find out weeks later that the home is infested with termites or has water damage that has rotted the wood frame of the house.
Never close on a house without an independent inspection done by an inspector of your choosing. The seller may offer to cover an inspection, but sellers' agents keep a list of inspectors known for rubber stamping a home inspection to push the sale through. Don't accept a contractual agreement that the seller will pay for later discovered damages, either. The odds are that all of their money will be tied up in their new home, and you don't want to go through the hassle of trying to repair your home and recover for your financial losses.
To schedule an independent home inspection, contact a company like Building Inspector Of America.