-
Before you buy a home, attend a
homeownership education course
offered by a
house counseling agency.
-
Interview several real estate
professionals (agents), and ask for
and check references before you
select one to help you buy or sell a
home.
-
Get
information about the prices of
other homes in the neighborhood.
Don't be fooled into paying too
much.
-
Hire a properly qualified and
licensed home inspector to carefully
inspect the property before you are
obligated to buy. Determine whether
you or the seller is going to be
responsible for paying for the
repairs. If you have to pay for the
repairs, determine whether or not
you can afford to make them.
-
Shop for a lender and compare costs.
Be suspicious if anyone tries to
steer you to just one lender.
-
Do
NOT let anyone persuade you to make
a false statement on your loan
application, such as overstating
your income, the source of your down
payment, failing to disclose the
nature and amount of your debts, or
even how long you have been
employed. When you apply for a
mortgage loan, every piece of
information that you submit must be
accurate and complete. Lying on a
mortgage application is fraud and
may result in criminal penalties.
-
Do
NOT let anyone convince you to
borrow more money than you know you
can afford to repay. If you get
behind on your payments, you risk
losing your house and all of the
money you put into your property.
-
Never sign a blank document or a
document containing blanks. If
information is inserted by someone
else after you have signed, you may
still be bound to the terms of the
contract. Insert "N/A" (i.e., not
applicable) or cross through any
blanks.
-
Read everything carefully and ask
questions. Do not sign anything that
you don't understand. Before
signing, have your contract and loan
agreement reviewed by an attorney
skilled in real estate law, consult
with a trusted real estate
professional or ask for help from a
housing counselor with a
HUD-approved agency. If you cannot
afford an attorney, take your
documents to a
housing counseling agency
near you to find out if they will
review the documents or can refer
you to an attorney who will help you
for free or at low cost.
-
Be
suspicious when the cost of a home
improvement goes up if you don't
accept the contractor's financing.
-
Be
honest about your intention to
occupy the house. Stating that you
plan to live there when, in fact,
you are not (because you intend to
rent the house to someone else or
fix it up and resell it) violates
federal law and is a crime.
