| It is easy to make some really huge home buying | | | | If your loan contingency has expired or been removed, |
| mistakes that are not easily fixed before closing. | | | | there is a possibility that you could even lose your |
| Sometimes these mistakes can haunt you for several | | | | earnest money as well as losing the home. |
| years or even ruin your dreams of home ownership | | | | Wait until the closing is completed before you make |
| before the deal is closed. | | | | any major purchases. The temptation to buy new |
| Not Confiding in Your Financial Advisor | | | | appliances or new furniture will have to be put on hold |
| Your advisor could be your real-estate attorney or | | | | for a few days or weeks. Once the deal goes |
| your real estate agent. Buyers will withhold vital | | | | through, then go shopping. |
| information for a variety of reasons from worrying | | | | Buying the Wrong House |
| about how they will be perceived to thinking they have | | | | If you are a first time home buyer, then make a list of |
| all the answers to simply not trusting their financial | | | | priorities you must have for your new home. Figure out |
| advisor. | | | | what are the deal breakers and what you can live |
| Real estate professionals handle so many different | | | | without. The deal breakers are things you refuse to |
| types of transactions and personalities, that it is likely | | | | compromise on. This list may include the number of |
| they have already heard everything. You will not | | | | bedrooms, a garage, large back yard or water-front |
| surprise them with any of your problems or concerns. | | | | property. Things-you-can-live-without is a list of things |
| Your advisors are representing your best interest and | | | | you would like to have, but if they aren't included in |
| they cannot do that if you don't tell them everything | | | | your new home, you will not be terribly upset. For |
| they need to know. Also, your advisor has more | | | | example, you would like to live in a cul-de-sac, have a |
| experience with dealing with problems and will have | | | | tree large enough for a swing in your yard, or have |
| much better answers than you can ever come up | | | | French doors leading out to the patio, but if the house |
| with on your own. | | | | you find doesn't have one or more of these, you will |
| If you are feeling scared or feel you have to back out | | | | still be happy living there. |
| of the deal, tell your advisor your concerns and listen | | | | Stick to this list. |
| to their advice. A professional can help you determine | | | | Do not get caught up in the emotion of home buying |
| if you really do need to back out of a deal and may | | | | and agree to purchase a home that is more than you |
| even be able to help you get your earnest money | | | | can afford. Do not settle for something less than you |
| back, which is that portion of the down payment that | | | | want because of other factors, like a nice |
| accompanies a purchase agreement. | | | | neighborhood or nice floor plan. |
| Altering Your Financial Status Prior to Closing | | | | If you need two bathrooms, do not settle for one |
| Once you are qualified for a loan, do not make any | | | | because you will be very unhappy in a very short |
| major purchases. Do not buy a car, washer and dryer, | | | | period of time. Never agree to pay more than 10% |
| refrigerator, lawn mower or garden equipment, | | | | over your original financial plan just because the larger |
| expensive electronics or computers, or furniture for the | | | | house appeals to your emotions. You may run the risk |
| new house. Slight alterations in your financial picture | | | | of losing your home in a few months if your mortgage |
| could change your credit ratios enough that an | | | | payments are too high. |
| underwriter will throw out your loan. | | | | |