- Before purchasing a home, look up a HUD approved counseling agency in your area and attend an education course.
- Select a qualified real estate agent by interviewing several and checking their references.
- Gather information about the prices of homes in the area you are interested in. Don’t be tricked into paying too much.
- Before finalizing your home purchase have a home inspection done by a qualified and licensed home inspector. If you can, be present when the home inspection is done. This is a great opportunity to see the good and bad of the home. If any major repairs need to be done negotiate with the seller on who will pay for the repairs.
- Shop and compare home loan options with several lenders. Compare costs and fees and don’t hesitate to let them know they are competing for your business. Be leery if anyone tries to direct you to just one lender.
- Do not let anyone convince you to make an untrue statement on your loan application, such as the source of your down payment, overstating your income, un-disclosing debt, or how long you have been employed. Criminal penalties can be brought against you if you falsify information on your mortgage application. So don’t do it.
- Don’t borrow more money than you can afford to repay and don’t let anyone talk you into borrowing more than you are comfortable with. If you default on your home payment you risk losing it.
- Never sign a blank document or a document with blanks. If information is inserted by someone else after you have signed, you may still be bound by the terms of the contract. Insert “N/A” or cross through any blanks.
- Read all documentation carefully and ask questions pertaining to items you don’t fully understand. Consult with your real estate agent or have an attorney review the documentation for accuracy. If you are unable to afford an attorney you can take your documents to a HUD-approved agency and see if they can review your documents or direct you in the right direction.
- Be honest about you intention to occupy the home. Stating that you plan to live there when, in fact, you are not violates federal law and is a crime.
This entry was posted
on Saturday, January 31st, 2009 at 12:10 pm
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