5 Things you May be Doing to Sabotage Buying a House
If you have started searching for a new home, you may not realize that there are certain things you might be doing that are hurting your chances of home ownership actually coming to fruition. You may think that since the market has made major progress on the road to recovery and you are in fact, gainfully employed, that there is nothing more to consider. Just shop and buy, right?
Think again. There are behaviors and action that you may be doing right now that is either thwarting your successful search or will cause unexpected havoc when it comes time to place an offer and fully secure your financing.
Here are 5 ways you maybe sabotaging your home buying efforts without even knowing it:
- You have not gotten pre-approved for your mortgage. Perhaps you took the basic, initial step and got pre-qualification. That is good. But, that is also very basic and does not hold as much weight as an actual pre-approval for set amount of money to be loaned to you. Ever get a credit card offer and they say that your limit is “up to” a set amount? Then you apply and once they get all your financial data, your limit is much lower? That is a similar scenario. Pre-qualified simply means they bank knows you have a job, approximately what you earn, and your credit score. But pre-approval means you have filled out all the financial information, they know what your debt-to-income ratio is and have verified all your financial obligations and income. That “pre-approved” amount is actually far more accurate and therefore something sellers will put their trust in when they consider taking your offer. It simply makes your offer more solid and also eliminates nasty surprises like not getting approved for a loan in the full amount you first expected.
- You will not consider foreclosure or quick sale properties. Yes, these homes may have the concern that they may not have had the upkeep they needed for the last few years. Yes, the buying process is slightly different in that you are placing your offer to be accepted by a bank, not Mr. and Mrs. Smith. But, in a market where inventory is scarce, and home prices are rising, this is a great avenue to consider to find a home and perhaps one at an amazing price. There are other considerations like home inspections to uncover hidden issues and the bank will probably not repair anything in order to sell to you, but it is at least worth consideration.
- You are set on a specific location in which to buy. While it is great that you know which neighborhood or community you want to live in, it opens up a whole lot of possibilities if you are willing to look outside that preferred radius. You REALTOR can advise you as to which near-by communities are similar in size, schools, population, and other demographics.
- You are not working with a REALTOR. Unless you commit to a specific REALTOR to assist your search and offer you sound, experienced advice about offers and negotiations, you are essentially winging-it. You may miss out on great homes that hit the market and are sold quickly. Having a REALTOR in your corner is the best way to achieve you goal of buying a home and do so for the best possible price.
- You wait to go see a new listing. In today’s seller market, timing is critical in buying the perfect home. If your REALTOR sends you a new listing and it looks promising, set an appointment to see it as soon as physically possible, and be prepared to make an offer if it is what you are looking for. This is a “if you snooze you lose” market right now.
The home buying experience can be stressful, but fun. Be certain you are not setting up roadblocks for yourself through you behaviors or actions, and you can ease a large portion of that stress.
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