Buying a home is a big event and it can lead to a lot of different emotions.
The excitement is wonderful but, the stress can get to you if you let it. Don’t sabotage your dream of owning a home. Steer clear of these mistakes and you’ll stay on track right through closing on your new home!
Maintain Your Pre-Approval
Just because you’re pre-approved doesn’t mean it’s good forever or that it can’t be changed. You need to stay pre-approved until after closing – even after your loan is fully approved do not make any changes to your job, credit score, or debt to income ratio. Lenders verify this information throughout the loan process and can continue to verify it up to the day you actually close. Do not open new lines of credit, don’t charge new debt on your credit cards, and don’t make any late payments. Furthermore, do not and we repeat DO NOT buy a new car or anything new for your future home. After you close you can buy whatever you want but, only after you close!
If there’s a house you want to go and see do just that. Don’t delay or wait until its perfect timing for your schedule. Homes that are new to the market get a lot of attention and in our current seller’s market time is not on your side. Adjust your schedule to make house hunting a top priority. Waiting until the weekend or even waiting a day with the market we’re in right now can mean you never get a chance to see the home you like much less ever get a shot at making an offer.
As we mentioned above it’s a seller’s market. Sellers are in the driver’s seat and low ball offers do not fly. As a buyer you have competition, sometimes a ton of competition and you have to put your best foot forward. That doesn’t just mean price (see the next mistake) it’s the terms as well. If you really want the house don’t play games, rely on your agent to run comps and to determine if multiple offers are expected. The market prices a home and if you’re competing with other buyers it is not the time to test the waters.
Don’t Ask For Too Much
Price is just the tip of the iceberg when it comes to an offer. Sellers are going to consider price, down payment, contingencies, conveyances, closing cost assistance, and settlement date (list is not all inclusive of what a seller will consider) and then from there determine which offer is best for them. Make your offer as appealing to the seller as you possibly can. Asking for closing costs in a seller’s market where you’re competing can be a deal-breaker, so can a long settlement period. Talk to your agent and rely on their expertise when deciding on what to include or exclude in your offer.
Nitpicking The Home Inspection
First, let’s start with there’s no pass or fail when it comes to a home inspection. No house is perfect, not even a new build. It’s an inspectors job to give you an idea of everything little thing that’s going on with the home so that you know what you’re getting into. That does not mean the seller needs to address every item or lower the price. Do not ask for minor items, if something major is found be realistic and work with the seller to find common ground. There’s always a win-win for everyone but, it requires keeping a level head throughout negotiations. Don’t be the buyer that wants a $5,000 price reduction because the HVAC is older and “might” break in the future.
With the right preparation and the right agent with a team of exceptional professionals (lender, title company, tradesmen, etc.) to guide you every step of the way you’ll not only be successful in accomplishing your dream of homeownership you’ll also have a lot of fun buying a home!