Ten things to avoid when buying a home:

1. Looking for a home without being approved. As a potential buyer competing for a property, you'll have a better chance of getting your offer accepted by being as prepared as possible.
   The benefits of being qualified can be easily understood when viewed from the seller's perspective. Imagine you're a seller in receipt of multiple offers to purchase your property. A complete stranger (buyer) is asking you to take your property off the market for at least the next two to three weeks while they apply for a loan. As the seller, let's consider the type of buyer you'd prefer to deal with.
   Moncor Mortgage Bank will provide you with a full approval (to investors guidelines) within minutes of complete application detailing what you need to provide to close the loan. This is not guessing what will work this is providing you a finite and limited list of what you need to close providing the information that you provided was clear and accurate. We recommend that you gather the information requested and transmit it to us at that time to remove all doubt and have that out of the way so you can focus on other items dealing with your move. Property information will not be considered, but full analysis of your personal financial position will be complete that we later verify.
2. Making verbal agreements. If you're asked to sign a document containing instructions contrary to your verbal agreements-don't! For example, the seller verbally agrees to include the refrigerator in the sale, but the written purchase contract excludes it. The written contract will override the verbal contract. Do not expect oral agreements to be enforceable. One of the closing documents you will receive from Moncor Mortgage Bank is "No Oral Agreements" which says that regardless of what anyone has told you the written agreement will prevail.
3. Make sure your lender can give you an easy to understand update on your loan process. Moncor Mortgage Bank provides an online up to the minute loan status on your loan. This does not leave you guessing if you will be closing on your loan on the expected closing day or trading voice mail messages with your loan officer.
4. Choosing a lender just because they have the lowest rate. While the rate is important, consider the total cost of your loan including the APR , loan fees, discount, and origination points. When receiving a quote from a lender or broker, insist that the discount points (charged by the lender to reduce the interest rate) be distinguished from origination points (charged for services rendered in originating the loan).
The cost of the mortgage, however, shouldn't be your only criterion. Have confidence that the company you select is reputable and will deliver the loan with the terms and costs they promised. If in the final hours of the transaction you determine that your Mortgage Broker has suddenly increased their profit margin at your expense, you won't have time to start again with a different lender. Dealing with a Mortgage Banker assures you that the lender has adequate capital to take care of you and has a vested interest in doing business correctly.
5. Not receiving a Good Faith Estimate. Within three business days after the broker or lender receives your loan application, you must receive a written statement of fees associated with the transaction. This is the law and a great business practice. Bring the Good Faith Estimate (GFE) with you when you close on your home. You should not be expected to pay fees, which are substantially different from those contained in your GFE.
6. Not getting a rate lock in writing. When a mortgage company tells you they have locked your rate, get a written statement detailing the interest rate, the length of the rate lock, and program details. The lender is committing to a rate and expects the same commitment from you.
7. Buying a home without professional inspections. Unless you're buying a new home with warranties on most equipment, it's highly recommended that you get property, roof and termite (in most states) inspections. This way you'll know what you are buying. Inspection reports are great negotiating tools when asking the seller to make needed repairs. When a professional inspector recommends that certain repairs be done, the seller is more likely to agree to do them.
   If the seller agrees to make repairs, have your inspector verify that they are done prior to closing. Do not assume that everything was done as promised. In areas where foundation problems are common be sure to inspect for wall cracks or cracks in the floor. Doors not closing properly are an indicator of an unstable foundation.
8. Not shopping for home insurance until you are ready to close. Home insurance prices vary from carrier to carrier. Waiting until the last minute could cause you to pay too much for your policy. Remember, you always have the option of changing your coverage even if your lender holds the escrow reserves for home insurance.
9. Signing documents without reading them. Pay special attention to the HUD statement as that is where all of your charges on your transaction are found. Whenever possible, review in advance the documents you'll be signing. (Even though some specifics of your transaction may not be known early in the transaction, the documents you'll sign are standard forms and are available for review.) It's unlikely that you'll have sufficient time to read all the documents during the closing appointment.
10. Not allowing for delays in the transaction. In a perfect world, all real estate transactions close on time. In the world we live in, transactions are often delayed a week or more. Suppose you asked your landlord to terminate your lease the day your purchase transaction was scheduled to close. A day or two before your scheduled closing date, you discover your transaction is delayed a week. In a perfect world, no one is inconvenienced and your landlord is willing to work with you. More likely, however, your landlord is inconvenienced and angry. Will you be thrown out? Will you have to find interim housing for a week or more? The eviction process takes a little time, so the Sheriff won't immediately remove you, but this type of stress-producing episode can be avoided. How? Terminate your lease one-week after your real estate transaction is scheduled to close. That way, if there is a delay in closing your transaction, you have some leeway. This approach might cost a little more, then again, it might not.