Buying a home can be a thrilling experience, but not all those thrills are positive. Sometimes, you just don't get the home of your dreams. There are many reasons for this, but there are also plenty of ways to avoid the heartbreaks that many first-time homebuyers experience. Let New American Funding help you avoid heartbreak as you buy your first home.

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Home Buying Heartbreaks
Buying a new home can be one of the most exciting times in life. The anticipation
of finding your dream home and enjoying the new space with family and friends
can, however, give way to disappointment if you don’t
take the right steps throughout the process.
Without proper preparation, several home
buying pitfalls can lead to heartbreak.
Follow the tips in these pages to avoid
those hazards and make your home
buying process as smooth as possible.

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Viewing Bad Matches
One of the biggest frustrations many homebuyers experience is time wasted
viewing homes that don’t meet their goals. Even in the best case, home shopping
requires a lot of time and effort. The last thing you want is to spend afternoons,
evenings and weekends driving all over town viewing homes that don’t come
close to meeting your expectations.
Working with an experienced real
estate agent who knows the market
well should prevent most of this,
especially if you sufficiently
communicate your needs. Express
your must haves, preferences
and deal breakers. Many agents
have worksheets to help you gather
your thoughts.

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Reaching Beyond Your Means
When it comes to home buying, it’s important to take steps in the proper order.
One of the first things you should do is seek pre-approval for a mortgage loan.
Pre-approval tells you just how much of a loan you can qualify for, preventing you
from falling in love with a house that’s beyond your financial reach. This is also a
good way to avoid viewing bad matches.
Applying for a pre-approved mortgage
is fairly simple, but just like any loan
process, it requires certain paperwork.
Check out our SlideShare on
“5 Things You Need to be Pre-
Approved for a Mortgage Loan.”

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Disagreeable HOA Regulations
Many neighborhoods have homeowners associations (HOAs) to regulate, among
other things, how home exteriors are maintained and what improvements you can
make on the property. The goal is to protect the value of the neighborhood for the
benefit of all homeowners. If you don’t read the HOA covenants in advance of
buying a home, however, you could be in for a surprise.
Some HOAs prohibit swimming pools
while others regulate how large
additions may be. Many prohibit
parking boats or recreational vehicles
on the property. Always read the
HOA regulations before making
an offer.

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Missing Out on the Offer
You found the house you want. Now it’s time to make an offer. This is often a
stressful time for many homebuyers. You want the best possible deal, but you
don’t want to lose out to a higher bid from someone else. Some industry experts
recommend an initial offer 5-10% below the listing price. Your real estate agent
should be able to offer guidance based on current market conditions.
Being pre-approved for a loan may also
give your offer more weight than a
slightly higher offer from a non-pre-
approved party. It’s a good way to
demonstrate you’re a serious shopper.
See our “12 Steps to Buying a New
Home” SlideShare.

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Finding Problems Post-Buy
Imagine finding out your dream house is actually a nightmare – after you buy it.
Things that looked good on the surface are flawed underneath. The only way to
protect against this is a professional home inspection. The inspector reviews the
house from foundation to chimney and reports on any problem areas. You can then
negotiate with the seller to determine
whether they will fix the issues or if
the sale amount can be lowered
accordingly.
Just before closing, you will have the
opportunity to do a final walkthrough
to make sure all agreed upon repairs
were made.

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No Cash for Renovations
Lots of homebuyers dream of finding that “great little fixer upper.” Sometimes,
however, they find renovations require more cash than they have on hand. If you
plan on making even moderate renovations soon after the buy, it’s a good idea to
have your contractor review the home with you before making an offer. This way
you’ll have a reasonable estimate of the costs involved.
Work with your financing company to
identify options to include that amount
as part of your overall loan package.
One option may be an FHA 203(k)
home improvement loan which can
provide up to $35,000 for
improvements.

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Avoiding Common
Home Buying Heartbreaks
If you’re in the market to finance a home
purchase, contact us today…
www.NewAmericanFunding.com

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