If there ever was a time that buyers should be excited, it is now. Low interest rates, a good inventory of homes on the market, up to $8,000 first-time homebuyer credit and a $6,500 existing homeowner buyer credit - this is the time!

But there are six major mistakes that can derail the home buying process.

Mistake #1: Failing to check your credit in advance of house hunting. Check you credit report to make sure the information reported is correct and complete. I can provide this service to you “for free”. Just download the PDF file under “Mortgage Prequalification”, fill it out and send to me. I will forward it to a mortgage company and we will have the results in a day or so. This will tell us what financing we will have available to us. Then we can go over the advantages and disadvantages of each option and proceed to find a house.

Mistake #2: Not working with a buyer’s agent. In today’s marketplace a buyer that is not represented by his/her own agent may be ill-equipped to navigate successfully through a transaction. We can work as a team with your lender to quickly respond to requests. With Alabama considered a buyer beware state this is extremely important!

Mistake #3: Don’t stop loan shopping at the best interest rate. Choosing the best loan is much more than finding the best interest rate. You need to look at the total package of the mortgage to meet your financial objectives. For example, if you are a short term owner, don’t waste money with a mortgage that requires you to pay discount points upfront or contains a pre-payment penalty. If you plan to hold the property long term, an adjustable rate mortgage is probably not in your best interest. Remember this; there is more to life than making mortgage payments!

Mistake #4: Failing to thoroughly check out the neighborhood. When initially exploring a neighborhood, we usually take the most direct route and main arterial streets. In order to get a true picture, use side streets to access the area and visit during different days of the week and different times during the day. What appears to be a quiet neighborhood on Sunday can become a hub of noise during Monday’s commute.

Mistake #5: Failing to attend the home inspection and final walk through. One of the best ways to learn about the house you are purchasing is to accompany the home inspector on the inspection. You can view how the house is constructed, uncover potential problems of plumbing and wiring, and ask the inspector questions as you progress. The final walk through gives you one last chance to make sure the house is as you last viewed it, including any personal property you have negotiated in the purchase.

Mistake #6: Not examining closing documents prior to closing. In today’s rush to get sales closed, most buyers are not given the opportunity to review the closing documents. Most of the documents are standard but the most important one is the HUD statement and mortgage/loan documents. This is the reason I make sure we review the HUD statement before we go to closing. At the time we write a contract on a property I will provide an Estimated Closing Statement. We will go over the contract and closing statement in detail before you sign them. The Estimated Closing Statement is an estimate of all the costs involved in the purchase on the property. The HUD is where the final numbers are disclosed by the closing attorney. We will compare the two documents before closing to make sure there are no surprises or problems. We will see where I could have been a bit lower or a bit higher on some estimate but the end result is that you are happy. The way I determine whether I have done a good job for you is that you are bored at closing. A boring closing is a good closing.

By arming yourself with knowledge form this web site, having a good buyer’s agent, and asking questions throughout the process, your home buying experience will have a much greater chance of being enjoyable and as mistake free as possible.