(Image: Andrew Michaels, via Flickr)
With mortgage rates continually hitting new lows and many real estate forecasters predicting a housing bottom at the end of the year, many renters are getting the urge to buy.
That leaves a housing market full of inexperienced, but interested buyers who need a little more help and guidance in navigating what will be for some the biggest purchase they ever make.
“There are two separate transactions happening here — one to purchase a house, and one to finance the transaction,” says Keith Gumbinger, vice president of consumer loan site HSH.com. “One has a lot of emotion involved in it, which is fine, but the other is a financial transaction and should be treated with cold calculation and clear eyes. That’s easier said than done when things will be moving so fast and a lot of moving pieces are set into motion.”
To help you navigate the homebuying process without falling for some of the most common pitfalls, here are some of the most common mistakes new homebuyers make and how you can avoid them.
(If you’re worried about how your credit could impact the home-buying process, check out Credit.com’s free Credit Report Card, for an easy-to-understand overview of your credit history, as well as your credit scores.)
Mistake #1: Trying to Rehab Your Credit Before You Buy »
Pages: 1 2 3 4 5 6 7 8 9 10 11
Pages: 1 2 3 4 5 6 7 8 9 10 11
Kali Geldis Kali Geldis is Credit.com's Deputy Managing Editor. She writes about a wide range of personal finance and credit topics. She previously ran MainStreet.com, the personal finance website powered by TheStreet. She has also worked for The Wall Street Journal as a Dow Jones Newspaper Fund intern and at The Huntington Herald-Dispatch as a reporter.
{ 3 comments… add a comment }
“Agents are the agent of the seller by contract” is not true in all states. A buyer should check to see how agency works in the state they are trying to buy in. Yes It is a good idea to have a contract with a buyer’s agent. It is true that the listing agent is by contract working for the best interest of the seller. Some people think that they can save money by using the listing agent to make their purchase. That is penny smart and pound foolish.
I disagree with you, Kria, and this is something most agents are unaware of. In all states, if an agent doesn’t have a buyers agreement in place, you do have a fiduciary obligation to the seller of a property. Once the buyer agreement is signed, you have a fiduciary obligation to the buyer.
Make sure their no problem with the Note of of the house.