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General Tips On Being A Smart Consumer
- Interview several contractors, and ask for and check references before you select one to build you home.
- Be sure the contractor understands and complies with local building codes.
- 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 all aspects of your building project.
- 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 downpayment, 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.
- 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 violates federal law and is a crime.
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