Buying a home can be a long and strenuous process which is why it’s so important to avoid doing the things that can make this process even more difficult. If you follow these rules you’re far less likely to encounter problems along the way and way more likely to have a smooth and stress-free experience.
DON’T search for homes before getting pre-approved
Before spending all of your free time scrolling online searching for your dream home and getting your hopes up, it’s important to get pre-approved for a mortgage so that you know exactly how much you can spend. Many real estate brokers won’t even bother showing you a home if you haven’t been pre-approved because you may not qualify for it and if you want to make an offer right away, you won’t be able to without a pre qualification letter.
DON’T work with discount brokers
Once pre approved, if you’re not already working with a real estate agent, it’s important to find one that you trust with this huge financial decision you’re about to make. Don’t go searching for homes without an agent. Many discount brokerages like Zillow, Redfin and Opendoor have homes on the market and make it “easy” for unrepresented buyers to make offers on their homes without an agent. However, it’s extremely important to have a broker on your side who can advocate for your best interest, whether it’s after an inspection or appraisal. These discount brokers typically are looking out for the best interest of their brokerage, not you, and as buyers you never have to pay your broker a commission so why not choose someone you know has a lot of experience and you can trust?
DON’T search for homes at the very top of your budget
When you get pre approved you’ll usually get a price range but try not to shop around for homes that are at the very top of your budget. You want to leave enough wiggle room for anything that may come up during or after the transaction. You also want to have the option of offering more than list price if it’s a competitive market and a home you really really want and if it’s at the top of your budget you won’t be able to compete.
DON’T quit or change your job
Whether it’s when you’ve just started searching for a home or when you’re already under contract, DON’T quit or change your job. This will likely prevent you from getting the loan you were pre approved for and could force you to back out of the contract.
DON’T make big purchases (cars, furniture, etc.)
So you’ve gotten under contract on your dream home and can’t wait to design and decorate it to your liking. It may be tempting to buy that $3000 couch so that it arrives the day you’re scheduled to move in but doing so could hamper your loan process and either delay closing or force you to back out of the contract! If you really can’t wait, consider asking a good friend or family member to buy it for you and then pay them back as soon as you’ve officially closed on the home.
Do you still have questions about the home buying process? Reach out so I can answer any and all of your questions! 720-404-0001 or Felix.Luck@compass.com
