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How to Negotiate Closing Costs
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Get a Mortgage in Your Pajamas
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What Really Matters in an Inspection?
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The Lowest Rate Can COST You Money
By focusing entirely on shopping for the lowest mortgage interest rate you play right in to the hands of unscrupulous mortgage originators and can wind up spending thousands of dollars unnecessarily.
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Reinvest or Pay Off Debt?
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You're ready to buy a new home. Maybe it's your first shot at the American dream. Or perhaps you're moving up in the world. Regardless, the same pitfalls exist whether shopping for a starter home or a spacious mansion. So, the wise buyer will want to avoid these potentially dangerous and expensive mistakes made by many home buyers:

Running before walking
Rushing off to look at homes before doing up-front preparation could spell disaster. Find a Realtor, and speak with a qualified lender to help you decide what price range you want to be looking in.

Over-buying
Being "house poor" exposes you to changes in personal circumstances and the national economy. Particularly with new home purchases, sales representatives like to upsell - upsell the floorplan, the upgrades, the lots. Biting off more than you can chew may not hurt now, but unforseen financial changes down the road can seriously crunch your budget.

Choosing a bad real estate agent
Choose a buyer's agent who understands your needs and financial limitations. Seek references and interview three, asking to see their activity lists. Verify their experience in the area where you want to live and the price range you're looking for. Going for the 'multi-billion' dollar producer rarely yields a comfortable fit; choose an agent who is knowledgeable, is professional, and who you get along with. It will make your transaction so much smoother.

Not comparing mortgage types
Take the time to compare several options to get the best plan for your financial situation. We often give our clients a list of mortgage lenders that we have worked with in the past. Call at least three lenders, and ask for a 'Good Faith Estimate' from each. Doing this will allow you to compare mortgages, as well as the fees that each will charge.

Waiting for the "perfect" home
Thinking that looking long enough for a home with everything you want could cause problems: You reject homes with most of your wants only to eventually purchase one with fewer of your requirements because you are worn out! While you wait for the "perfect" home, rising housing prices and mortgage rates add to the purchase cost.

Thinking the seller covers all costs
Some buyers incorrectly think that sellers pay real estate commissions as well as other closing expenses. Costs you will need to consider will include but not be limited to: lender fees, loan fees, title fees, tax prorations, hoa prorations, insurance and interest pre-paids, and a few small filing and courier fees. The fees that you pay will very depending on lender, title company, and whether or not you finance your home purchase.

Neglecting inspections, audits and appraisals
Buyers often underestimate the importance of independent property inspections, environmental audits and separate property appraisals as a condition of purchase. We ALWAYS recommend to our buyers to perform independent property and termite inspections, and sometimes even HVAC inspections depending on the age of the home. Costs will vary, but on a typical home you can expect to no more than $500 for all three. That's a small price for your peace of mind.

Not going back to check the neighborhood
You house hunted on weekends, but what happens on weekdays or after dark? Is the "convenient to town" house on a thoroughfare packed with cars during commute time? Learn the neighborhood before you buy. It's a good practice to check out potential neighborhoods at three different times. In the morning, in the late afternoon and on the weekends. You can get a very good feel for a neighborhood by making these trips.

Forgetting to consider resale
When buying, it's easy to forget what it will be like to sell your home later on. No one can tell you exactly what your home will be worth in three years, but a qualified Realtor can help you understand pricing trends for any given neighborhood. You may plan on living in this home for 25 years, but more often than not - you won't.

Buying the most expensive home
If it's the most expensive home on the block, your neighbors' lower home values could affect yours. Sidestep homes costing 50 percent more than neighboring dwellings. You want your home's value to fall right in the middle of your neighborhood. If it's considerably more expensive, or considerably cheaper - red flags will go up in potential buyers minds.

Forgetting about closing costs
A mortgage lender should provide an estimate of costs, including: points, escrow fees, title and homeowners insurance, legal costs, property taxes, plus deed recording and notary fees. This is the 'Good Faith Estimate' that was referred to earlier.

Don't Get Hammered

David Weekley, one of the country's largest home builders and author of How to Buy a Home Without Getting Hammered, adds these home buying mistakes:

• Trying to make a shrewd investment - Buy based on what fits your family. Don't try to guess what will happen to the market.
• Overlooking an inferior floor plan for an attractive exterior - No matter how attractive the exterior, you need a livable home.
• Not checking out the builder's reputation on a new home - Talk to three or four people who live in the builder's homes and get their feedback.
• Not getting what you want because of impatience - Give yourself time. Impatient decisions can lead to mistakes.
• Not buying at all - If you can afford a home and don't buy one, you lose the benefit of tax deductions, building home equity and the appreciation in value.