Carefully Inspect the Home. If you are not buying a newly constructed home, you will be buying a used home “as is” without warranties from the seller. It is recommended that the sale be contingent with you being satisfied with the results of an inspection done by a professional housing inspector. This would have to be stated in the purchase agreement.
Shop Around for the Best Financing Arrangements. Even before you go house hunting, you may want to speak with a lender to determine what you can afford based upon your income and expenses. At no charge, many lenders will speak with you regarding your situation to give you some direction in this area. Even though a lender may ultimately determine that you can qualify to make a certain monthly payment, you still need to decide whether your lifestyle will allow you to afford the monthly housing cost.
Before you apply for a loan (typically done within five days after signing a purchase agreement) you should shop around and compare interest rates and mortgage costs between the different lenders. You will also want to know whether the lender will service the loan for the life of the loan. You may wish to be “pre-qualified” by a lender which may make you more attractive to a seller.
Understand the Role of the Real Estate Agent. Typically, because the real estate agents are paid a commission by the seller (typically 7% of the sales price) the agents only have a fiduciary duty to the seller and may not be looking out for the buyer’s best interests (unless you have a true buyer-agent agreement.) You should rely on your attorney to best protect your legal interests.
Do Not Rely on Oral Representations. If a representation made to you is important and you are relying on it in purchasing the property, it must be stated specifically in the purchase agreement.