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Four Home-Buying Mistakes You Don’t Want to Make - 2010-01-17
FOUR HOMEBUYING MISTAKES YOU DON'T WANT TO MAKE

If my guess is right, a lot of prospective buyers who have been sitting on the real estate fence will be thinking more seriously about a home purchase in the year ahead. And why not? Interest rates are still very attractive, prices still competitive, and more buyers than ever may qualify for a substantial tax credit just for making a purchase.

If you are one of those considering making a move, here are some common homebuying mistakes you can avoid with just a little planning. Each is an error made by many inexperienced buyers, and side-stepping these problem areas will help make your purchase a successful one.

Here are four homebuying mistakes you don't want to make:

* Not getting prequalified by a reputable local lender.

Until you sit down with a reputable lender and tell them all about your financial situation, you are not in a position to even consider buying a home.

You can't know what you can afford, and you can't know how much you can likely borrow. In addition, a good lender will match various loan products to your personal needs. For example, if you only plan to stay in Atlanta for the next five years, you may save money with a 5/1 ARM rather than pay a higher rate for a 30 year fixed loan.

* Not working with a real estate professional.

After you have met with a local lender, your next stop should be the office of a seasoned real estate professional.

Trying to buy a home with out representation is like trying to tune up a car engine by yourself. Yes, it can be done, but there is no benefit in doing so.

If you end up buying a listed home, the seller will pay for all commissions. And if you end up buying from an owner, both of you will be fighting over the same dollars. Take my advice and ask someone you trust to recommend a veteran real estate broker.

* Failing to shop & compare.

The primary purpose of seeing more than one available home is to match your wants and needs with the features and benefits of the properties which meet your criteria. Because each house is unique, it pays to take some time to shop and compare until you find the best possible match.

In other words, don't rush the process.

* Not buying by April 30, 2010, and missing the Tax  Credit.

The $8,000 First Time Homebuyer Tax Credit and the $6,500 Repeat Homebuyer Tax Credit are both set to expire at the end of April of this year, although if you have a signed contract by that date, you can have until the end of June to get it closed. Don't miss the deadline.
 
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