10 Mistakes You Can't Afford When Buying or Selling Central Florida Townhomes or Townhouses

The Professionals at R & S Realty Group, Inc. realize that there are many do's that are required in order to get ready to purchase or sell Florida townhomes or townhouses.  We also know that there are many don'ts that the buyer or seller may noy be aware of.  We've prepared this list of don'ts for the buyer or seller of new townhouses.

Below are Ten Things to Avoid During Your Buying or Selling of Central Florida Townhomes

1. Confuse Pre-Approved and Pre-Qualified with a Loan commitment.

These are debatable terms in the Real Estate industry because not all lenders apply the same definition to each expression.  One leading real estate dictionary contains neither expression because their definitions are uncertain. In most cases when a lender says that you are "pre-qualified," the lender is making an educated guess about how much you can borrow based on information you've provided but has not yet been verified. If you are "pre-approved," the lender has verified everything you have told them and is offering to lend you up to a given amount at current interest rates -- under certain conditions for your search for townhouses.

Whether you are pre-qualified or pre-approved,a full loan comitment, final clearance and a check at closing are subject to an appraisal that is satisfactory to the lender, good title, a last-minute credit check, and other verifications.

When meeting with potential lenders, always ask how they define each term and what additional steps will be required to obtain a loan for the purchase of townhouses.

2. Don't Choose the Wrong Mortgage.

With the advent of instant refinancing, loans on townhouses are no longer the lifetime obligations they used to be. Still, you don't want to be saddled for even a short period of time with the wrong one. Investigate all your options, then lay your choices side-by-side and do the math.  Make sure to compare worst-case scenarios. Be sure to look at initial interest rates, future interest rates and payments (if different), and the possibility of prepayment penalties.

3. Don't Skip a Home Inspection.

Failing to make your purchase contingent on a satisfactory home inspection could be a costly mistake. Independent home inspectors examine townhouses from stem to stern. They'll be able to tell you whether the roof and/or basement leaks, whether the mechanical systems are in good shape and how long the appliances should last. They can't report on things they can't see, but at least their trained eyes should be better than yours. So don't pass just to save $300-$400; that's money well spent when buying townhomes.

4. Dont' Have Too Much Credit.

Excessive credit is almost as bad as no credit or even bad credit. Even if you pay your bills on time, lenders tend to focus just as much on how much credit you have available to you as they do on timeliness. So being up to your ears in car loans and credit cards is a sure way to be turned down for a mortgage on new townhomes. Postpone any big ticket purchases until after you buy your townhouse.

5. Don't Lie on Your Loan Application.

Any exaggeration of your income on a mortgage application or putting down other untruths can be a federal offense. Lenders rarely prosecute liars, but if they find out later, they can call your loan due and payable. Don't ever sign your name to a loan application that is not completely filled out, either. Loan officers have been known to stretch the truth to get a client approved for the purchase of towhhouses, but it's the borrower who ends up paying the price, often in the form of monthly loan payments they can't afford.

7. Don't Fail to Check Out a Remodeler.

Never hire a contractor who knocks on your door or says his prices are good for only a few days. Reputable remodelers don't solicit door-to-door, and they don't cut prices just because they happen to be in your townhomes neighborhood.  Check out a potential contractor thoroughly by calling several of his past townhouse clients, your local better business bureau, his bankers and suppliers, and your local consumer affairs agency.

8. Dont'  Hide If You Can't Make Your Payments.

The worst thing you can do is ignore phone calls and letters from your lender when you are behind on your payments.  Lenders have many options at their disposal to help keep borrowers from losing their Central Florida townhomes to foreclosure. But they can't do anything for you unless they can talk to you about your difficulties. Lenders are the enemy only if you give them no other choice.

9. On a more humorous note: Don't Ever Burn Your Mortgage.

It is be a great feeling when you make your last townhouse payment. After all, the place is now all yours.  Well beleive it or not, people have been know to celebrate by holding a mortgage burning party. Yes, they torch the original document. We suggest that if you want to celebrate in such a way, you make a copy and burn that instead.  Keep all your townhouses loan documents in a safe place.

10. Don't Just Hire Any Agent to Sell Your House.

Not all real estate agents are the same. Look for an Agent that specializes in your neighborhood and is a top producer for the sale of Central Florida townhouses in your market. Ask all of your candidates how they plan to market your townhouse.  Ask if they are fimiliar with the buying or selling prices of townhomes in your market. Ask what you can do to make the place more attractive to prospects and how much you should ask. If you don't like any of the answers, look elsewhere.

The Professional Real Estate Agents at R & S Realty Group, Inc. will help you avoid any and all of the above when buying
or selling townhouses in Central Florida.