Tuesday, March 07, 2017 / by Jason Huval
Avoid these 4 Real Estate Transaction Deal Breakers
The thought of purchasing a new home can be exhilarating and at the same time a bit scary. For most, this is the largest commitment they will ever make to a purchase. However, what if things go sideways and you end up not living in the home you’ve decided to buy and have fallen in love with? No matter how careful one is there are always deal killers that can pop up at unexpected times and completely derail your plans. Many deal breakers are avoidable so be sure to pay attention to the below points if you want to complete the transaction on your dream home!
Mortgage Preapproval Doesn't Mean Guarantee
A common mistake made by those looking to buy real estate is that they don’t fully understand the process of obtaining a mortgage. Preapproval for a mortgage is one thing, but this doesn’t guarantee you’ll get the loan or the amount you expect to be loaned. Your desired lender will go through all of the normal steps such as ordering an appraisal, running credit reports, verify employment and income, etc. to prepare a file to be sent to an underwriter. This individual is the one who will determine whether you are an acceptable risk for the mortgage or not. Just before you are granted your loan, the underwriter will perform a soft-pull of your credit to see if anything has changed and this is usually when those looking to purchase a home can get themselves in trouble. Be sure that once you start the application process for a mortgage that you keep a close eye on your financials and don’t do anything drastic that may disrupt your financials and in the end sabotage your chances at obtaining your loan. It’s best to avoid all unnecessary credit transactions while this process is happening.
Know Your HOA and Their Guidelines
Home Owner’s Associations can be both a blessing and a burden. If the house you have chosen is located in a neighborhood with an HOA they should present to you their paperwork outlining the guidelines which you should read over carefully. It is advisable to do this before any documents are signed on the house as most HOA’s have what could be deal breakers for some in the fine print. Scour these for any liens on your desired property, any current litigation against the HOA, the builder, the developer; basically any red flags you may see. If you aren’t interested in reading this document front to back, hiring an attorney to take a look can save you from a massive headache in the end.
Every home, even those built yesterday, can have problems. Not having a grasp on this can set up for failure in your real estate transaction. Everyone wants a home with previous owners who were the best home owners in existence. This, however, isn’t the case most of the time and most homes will have faults. Paying for a home inspection can save you unwanted hassle and headache later down the road. When it comes to big things to be done in terms of repair, negotiating with a seller is advisable. However, when it comes to small things you should be wary of nickel and diming the seller as, for Austin, we are in a seller’s market. You must imagine you aren’t the only offer on the house.
With every home purchase, buyer’s will need a down payment – typically three to twenty percent of the total loan value. What buyers usually tend to overlook is the closing costs of buying a home and these fees are usually tough to pin down. They can vary depending on the type of loan, the amount paid down and a host of other factors.
This lack of knowledge can quickly deteriorate and paying attention and keeping constant communication with your lender can help you stay informed. Be sure to overlook all documentation provided to you thoroughly or hire someone to do so. You’ll be happy you did.
Undoubtedly, real estate deals conclude successfully. Typically, it all comes down to the experience of your agent. Choose wisely and you’ll avoid the common errors that can dismantle your transaction. It is advisable to have an agent on your side dedicated to finding you the best deal! All of Central Metro Realty’s real estate agents are seasoned professionals with years of experience in the business. Connect with an agent today to make your buying process a breeze!