How to Avoid Losing Money when Buying a Home

You can avoid losing money when attempting to finance a home. Not being approved for a home loan can be upsetting. When you add the loss of hundreds or thousands of dollars to the equation, it can be devastating. Here are some steps that can help.

Steps

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    Ask questions. When putting down a deposit on a home, be informed. Is the deposit refundable? Under what circumstances is it refundable? Is there a time limit as to when it can be refunded?
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    Don't pay unnecessary fees. Many times banks and lenders charge up front application fees. There are many reputable companies that will approve you for a mortgage without large application fees. Offer to pay the credit company directly for your credit report and offer to pay the appraisal company directly for the appraisal. This way you don't pay over-padded fees.
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    Appraisals and Home Inspections. Don't pay for appraisals and home inspections until you are certain that the purchase contract has been approved by the seller and the mortgage has been pre-approved by the bank. Do not pay for a home inspection without having a purchase contract that is fully signed by all parties. If the home is being purchased as a short sale, make sure that the seller's lender has approved the offer. Do not pay for an appraisal until you know that your income, credit, and assets have all been approved by the bank.

Tips

  • Ask your real estate agent and mortgage agent questions. Make sure that they know the correct answer, or research the correct answer for you. Stay in contact with them and tell them you want to be informed of every step in your transaction.

Article Info

Categories: Buying Property