Ready to Buy a House – Don’t …

What Not to Do When You are Ready to Buy a House

1.  Don’t try and Go it Alone. 

Homebuying is a very complicated process and you want a professional that is in “it” day in and day out – a professional that closes several transactions a year.

Some people think that if they try to buy a house on their own, they will be able to negotiate a better price, so they try to tackle the process on their own.  If you are one of these people, the first problem you will encounter is searching for a home on the online search engines.  You find a couple of houses and call the listing agents to find out the houses are under contract already.  If you’re working with our team, we will take the time with you to get a good understanding of what you are looking for and use the MLS search engine to narrow down the search and it will include only the houses that are currently available.

The second problem is if you have 5 or 6 houses that interest you, then you have to make 5 or 6 separate appointments with 5 or 6 based on the schedules of 5 or 6 different agents.  If you’re working with our team, we will schedule the appointments based on your schedule and 9 times out of time be able to see them all within the same time frame.

What about new construction?  Can you just go into a new construction neighborhood and walk through the builders model homes.  Our team will add value in this scenario too.  We will narrow down the new construction neighborhoods that meet your specifications and schedule time to meet with the builders to preview their models and get a better understanding of the product they deliver.  Our team will also review the data to see what the builder has sold other homes for to ensure you get the best price.  In addition, we will do all of the things along the way to ensure a smooth process (e.g. review the builder’s contract, recommend new construction inspectors, assist you with the lender selection process, review the settlement statement, etc.)

What about For Sale By Owner (FSBO) houses?  As with any type of home, our team will help with FSBO too.  We can find them and schedule the apointments and work with you throughout the entire process.

Finally – a new category called “Coming Soon.”  These homeowners will either be represented by an agent or FSBO.  What do you think my answer is to this category?  We can help you with this type of home too.  In fact, no matter what type of sale it is, even foreclosures, auctions, trust sales, etc. we can help you.

Our team is ready to help you maneuver the entire process from negotiating the contract (which is more than just the price), helping you select a qualified inspector, negotiating repairs, providing referrals to good lenders, reviewing the title insurance commitment, reviewing the settlement statement,  ensuring you understand the total cost of ownership (taxes, insurance, maintenance, utilities, etc.), we have the experience to be your trusted partner throughout the entire process.  We do this day in and day out – we understand the market, we understand the lending process, we can anticipate the issues before they come up.

2.  Don’t make any major or irregular purchases on credit or cash or apply for new lines of credit.

You may be surprised what some people will do while their lender is working to get their mortgage underwritten for the purchase of a new home.  Fortunately, we haven’t had any of our clients do this, but other agents have had deals go south because their clients went out and got a $10,000 line of credit to buy new furniture, some have bought new cars and some have even cosigned other loans for family or friends.  Don’t do it.  Wait until after you close  on the purchase of your home and your lender funds the transaction to take out new lines of credit, apply for new credit cards or anything different from what you normally do.  If in doubt, check with us and / or your lender first.

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3.  Don’t change jobs.

Changing jobs even for the same salary or more may not prevent you from getting a new mortgage, but this event will definitely slow the whole process down because your lender will have to see the pay statements from your new employer.

If you’re thinking about becoming self-employed – wait until after you close and the fund the purchase of your new home.  Your lender will require two years of income history if you are self-employed, so this event would bring the home purchase to a halt for two years.

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4.  Don’t get emotionally attached to a home until the “Proverbial Lady” sings.

In residential home sales, our clients on occasion “fall in love” with a house.  I know it’s hard sometimes, but you should try to avoid getting attached to the house you pick this until it is certain it is yours.  We can handle the drama, but we don’t like to see our clients disappointed when “the right” house didn’t pan out.  In todays market you could be one of multiple parties submitting an offer on the house.  If your offer is accepted, then you still need to get it inspected and negotiate preferred repairs – sometimes this doesn’t work out.  So – play hard to get and fall in love with the house after you close and fund the purchase.

If you have questions about any of these points are want to start your home search, please give us a call.  One of our preferred lenders is Popi Winters with Gold Financial.  Her website is http://popiwinters.com/

I look forward to seeing you at the closing table.

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3 Responses to “Ready to Buy a House – Don’t …”

  1. douglasc says:

    It’s always a pleasure Jill!!

  2. Jill Cheatham says:

    Great job with all the blog, great information! Doug! Look forward to working with you again in the future!

  3. Michelle Alcorn says:

    Well said. These are the reasons The Curtis Team is here to help.

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