3 Costly Mistakes to Avoid When Buying a Home

While getting your dream home under contract can be a good thing since it brings you a step closer to finally calling it your own, you need to take things easy to avoid getting yourself into trouble. Keep in mind that securing a mortgage pre-approval and getting under contract doesn't guarantee that your lender will fund your home loan.

Since a lot of things can happen until closing day, you need to carefully tread your path to avoid making some costly mistakes that you may regret later. How do you do it? Here are 3 simple tips that you may want to consider.

Avoid indiscriminate spending

Clearly, you may be thrilled on the idea of finally living in your dream home but that doesn't mean that you have to go shopping for new furniture before your loan closes. Keep in mind that any new payments will negatively affect your monthly debt-to-income ratio, and hard inquiries on your credit report will lower your credit score.

Pay your bills on time

Since payment history contributes about a third of your credit score, any late payments in your credit report may ruin the deal. While this may seem insignificant for those who have an 800 score, it may be enough for some lenders to reject your loan.

Don't co-sign a loan

Co-signing a loan during the mortgage lending process is not a good idea since it means that you will be financially liable for someone else's loan. This could also affect your assets and debt-to-income ratio.

Remember, getting under contract does not serve as a guarantee that you can get the money you need to buy your dream home so avoid making any of these costly mistakes before closing on your home loan.

For more valuable tips on selling or buying a home, please visit my site at http://www.pamsantoro.bhhsgeorgia.com/. You can also contact me at 678-656-6627 if you have any questions about local market conditions, financing or anything that can help you with in your search for real estate.

Photo courtesy of  ddpavumba at freedigitalphotos.net

The Life of a Real Estate Agent: A Sneak Peak on What Happens Behind-the-Scenes

Do you have any ideas how hard your real estate agent is working for you? Well, for every hour your agent spends with you, he or she is working an average of nine hours just to make sure the sale comes through. After all, they don't get paid a single dime until they seal the deal.

So, what do agents do to earn their commission? Here are some of the things that keep them busy all day long.

They research potential properties online.

The best real estate agents spend considerable time (about two hours or more per day) shopping for potential properties online. They also check their multiple listing service database on a regular basis so they don't miss anything out. They know that finding the perfect match may take some time so they don't give up easily.

They actively prospect for new business. 

The most successful realtors drive around town to check new listings. After all, there's nothing better than previewing and sizing up properties. They also take the time to seek out potential customers by calling past clients and absentee owners, and checking expired listings. 

They provide marketing services.

The best agents prepare effective marketing materials (fliers, virtual tours; magazine, newspaper and online ads, etc.) using their own money to increase their chances of making a sale.

They network with other agents.

Agents spend a lot of time with each other swapping listing information. Aside from helping them find a property that matches their buyers' preferences, these pitching sessions also allow them to reach out to fellow agents who have qualified buyers.

They will make sure the sale goes smoothly.

Your agent will help you navigate through the entire transaction process. They will give you all the information you need and advise you on certain issues but will never make the final decision for you. However, there will be times when they will try to shield you from the occasional drama that may result when buyers or sellers get difficult. They may even act as your therapist and keep you calm when the pressure's on.

For more valuable tips on selling or buying a home, please visit my site at http://www.pamsantoro.bhhsgeorgia.com/. You can also contact me at 678-656-6627 if you have any questions about local market conditions, financing or anything that can help you with in your search for real estate. Remember, no one sells a home like a Mom!

Photo courtesy of renjith krishnan at freedigitalphotos.net