Home Buying Mistakes Your Real Estate Clients Should Avoid

Home buying

A home is probably one of the most expensive things a person buys in their lifetime. Whether they’re first-time homebuyers or they know the home buying process inside and out, your clients trust you to help them navigate this stressful and exciting time.

Help your clients sidestep some common pitfalls of home buying listed below.

Overlooking federal loan programs for homebuyers

First-time homebuyers benefit from homeownership and buying assistance programs and financing options, like FHA loans or Fannie Mae HomeReady® and Freddie Mac Home Possible® mortgages.

Your clients may also be eligible for VA loans, USDA loans, or other special programs through the U.S. Department of Housing and Urban Development.

Remember, many of these mortgage assistance programs have income limits and other requirements that your clients must meet to qualify for them.

Forgetting to set money aside for unexpected costs

If your clients buy a previously owned home, it may need upgrades or repairs shortly after the sale closes and they move in.

Ensure your clients have enough money saved to afford everything they might need. This includes a down payment, closing costs, moving expenses, and the cost of any unexpected repairs their new home may need.

And speaking of unexpected costs…

Neglecting to purchase a home warranty

Existing homes usually come with existing systems and appliances. Your client’s new-to-them home may have been running on the same HVAC system and ductwork for two decades. And that 20-year-old system could be on its last legs.

A home warranty can help save your clients money on unexpected home system and appliance repairs before, during, and after the sale. It’s also a useful piece of your risk management strategy by decreasing the risk of after-sale disputes.

Learn more about how a home warranty from Old Republic Home Protection benefits your clients and you.

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