commission on the sale price, and has the seller’s interests in mind. A buyer’s agent, on the other hand, is paid from a commission that is split with the seller’s agent. All-in-all, it’s pointlessly risky to negotiate conditions and sale without proper professional representation on your side.
NOT KNOWING YOUR CREDIT SCORE
If you apply for a mortgage loan without checking your credit score, you could end up paying a lot more than you expected. It is best to perform a credit check beforehand. Take special note of the information regarding the importance of good credit in applying for a home loan and take all necessary steps to repair credit problems prior to home shopping.
NOT KNOWING YOUR BUDGET
Not knowing what you can afford is the wrong way to go into home buying. Even if you can get a mortgage on a place you really should not afford, you will be “house poor” and/or live in great debt for a long time to come. We learned from the subprime mortgage fiasco that what the bank says you can afford and what you know you can afford or are comfortable with paying are not necessarily the same. You might be able to eke out the monthly payment on that big old Victorian, but can you afford to furnish it? Perhaps the cute little Tudor is more appropriate. Ensure you have a complete and accurate budget. List all your monthly expenses — excluding rent, but including vehicle costs, student loan payments, credit card payments, groceries, health insurance, retirement savings, general savings, recreation (e.g., the gym), fees, and so on. Be comprehensive and do not overlook major expenses that only occur once a year, like insurance premiums paid annually or annual vacations, or minor ones that come up more frequently and quietly pile up in
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