There are many facets of buying a home and the process can be a bit overwhelming at times. However, buying a home is very exciting and if you avoid various home buying mistakes, it will make your home ownership process one that is rewarding for many years to come. I recommend that home buyers avoid these three common mistakes when it comes to purchasing a house.
#1: Not working with a buyer’s agent.
A knowledgeable Realtor can help provide advice that fits your specific situation. An experienced buyer’s agent has worked with hundreds of different home buyers and they can help you understand what’s happening each step of the way. You’ll also be able to ask questions that may come up and your agent will also help you plan for closing costs and other costs that may arise. In addition, a buyer’s agent will help you know if a home is worth the price, what its resale value might be, and they will be your advocate when it comes to negotiations. When it comes to buying a home, you want someone on your side, and a qualified Realtor will be there the whole time.
#2: Not getting pre-approved.
Getting pre-approved for a mortgage serves dual purposes: it shows sellers that you’re serious and it also gives you a realistic idea of how much you can afford for a home. Work with a lender that you trust and gather up all relevant financial documents like pay stubs, tax returns, and bank statements. Your lender will work with you to get the information needed to provide an accurate pre-approval letter. Then, you can start shopping for homes within your budget.
#3: Not getting an inspection by a credentialed inspector.
A credentialed inspector will help alert you to any potential problems that the home may have such as faulty wiring, plumbing leaks, or structural issues. A layperson generally wouldn’t be able to spot these things, so when it comes to spending hundreds of thousands of dollars on a home, it’s worth it to pitch in a little bit extra to pay for a qualified and experienced inspector that holds proper credentials. Skipping that step could be costly, and you may end up paying for it later when you discover something major is wrong with the home.
If you’ve decided that you’re ready to buy a home this autumn, contact me today to help you get the ball rolling!
If you’re thinking about selling your home, you have a lot of different factors to consider. You’re thinking about where you’ll move and what it will cost, and finding a qualified Realtor is one of the biggest decisions. If one of your questions involves finding out more information regarding reduced commission versus full rate services, here I’ll cover what the three basic levels of fees and services include.
#1: Very Discounted Services: This will include access to the MLS only. The seller will input all information and will set the buyer’s agent fee. The seller pays for marketing and will negotiate elements of the contract. This can work for some situations, but being an unrepresented seller in today’s complex market can be risky and oftentimes results in a lower net price. Most buyers will have representation, so the fee you save is really only half of the full real estate fee.
#2: Cut-rate fees: This will again only save half of the real estate fee, as buyers are usually represented by an agent. With full service representation, you usually get more experienced and knowledgeable agents to work with you. This is the “secret sauce” that can save you big time in the end – especially in the areas of price negotiation, inspection negotiation, and other timing issues that can derail the overall transaction.
#3: Full-service: When using a full-service Realtor, you’ll get a fully developed and proven marketing plan. The Realtor will additionally help you develop a pricing strategy that will help get your home sold in a timely way. You’ll work together to address issues upfront that could cause a buyer to pass by your home. The key here is knowledge, knowledge, knowledge! An experienced Realtor has been part of numerous, varied transactions that can help benefit you throughout the process so you can get the best price for your home with the quickest closing date and the least hassle.
If you have decided that it’s time to make the jump to sell your home, now is a great time to do that. The information around fees can be a complex topic to consider, so if you have additional questions, I am happy to sit down and talk with you about what could work for you and your specific situation.
Buying a home is an incredibly exciting time! It also involves a lot of details and it can be a little overwhelming at times – especially if this is your first time buying a house! To make things a little easier, here are some tips and information that you should keep in mind when it comes to making one of the biggest purchases in your lifetime.
#1: Don't change your financial position.
When you’re buying a home, it’s important to keep your financial position steady. Don’t quit your job and try to find something new. Also, it’s not a great time to become self-employed, where your income could become unstable. In addition, be sure that you keep the money that you have set aside for closing costs in a place where it will not be spent. Wait to make big financial changes after you have closed on the home and have moved in.
#2: Don't change your credit position.
Having good credit is a big part of securing your loan and moving into the final stages of closing. Don’t buy a car, truck, furniture, boat, or motorcycle during the process of buying a home and be careful that you don’t max out your credit cards, apply for new ones, or fall behind in your payments on cards that you already have open. Don’t be lured into those “90 days same as cash” deals, either. That will show up on your credit report as well. Making these types of mistakes can cost you time and could be detrimental to the overall process of buying a home.
#3: Don't change your bank accounts.
This may not sound like a big deal, but changing your bank accounts or making large deposits could throw a kink in things. Before you do this, check with your loan officer.
#4: Be ready to provide a lot of information.
Get ready to provide a lot of personal paperwork and have any forms completed in a very specific timeframe. Federal guidelines have changed a bit and there are new deadlines that have to be strictly adhered to. Don’t worry, your loan officer and your Realtor will walk you through every step so you know exactly what’s needed and at what time.
#5: And of course, be honest and open.
Don’t omit debts or liabilities from your loan application. Now is the time to be very clear, not withholding facts that could help expedite the loan process.
Most importantly, try not to stress. It’s normal to be overwhelmed at points in the process and feel doubt how things are going. So, when in doubt, call your Realtor or loan officer, but try not to blame us for the rules – we didn’t make them up! We are glad to help you through the many steps and make sure you come away from this happy and excited to be in your new home!
Tips Provided by Nancy Johns, Blog Written by Brooke Strickland (brookestrickland.org)