Tuesday March 6, 2018 by The Mettle Group
You may be ready to take the next step in your life and purchase your first home. You may even be ready to move on to a newer home. No matter the case, there are several things that you must do before you move into that beautiful new home. Things like finding a realtor, finding the home, securing financing, saving for a down payment, and many others. With all of those variables, there are some roadblocks and potential mistakes to avoid.
Here is a list of the top five mistakes that our loan officers witness when someone is purchasing a new home:
It may not seem like such a big deal to have a great realtor at the start. It is just someone to show you houses, right? Yes, they do find homes and schedule times for you to see them; however, that is just a small part of their job. You need to make sure you have a professional realtor with a high reputation. It is much better to write an offer with a well-known realtor who can help you get your offer accepted over a newer, less experienced realtor. Make sure your realtor uses effective communication and can sell your offer. It’s much better to have someone call and discuss your offer with the selling party. Someone who can explain why and how your offer is superior, and how your lender can get the job done and the loan closed. This is in sharp contrast with the typical realtor who may just send an email or text showing that their client has made an offer. In this case, you should prepare yourself and wait for a decline. It is too hard to find a home in today’s market. There are likely multiple offers on any given home. Make sure you go into it with the knowledge and help that you deserve.
You may be searching for financing with an emphasis on achieving the lowest possible rate. Though this can be a good thing, it shouldn’t be the only thing you consider. The cheaper the loan, the cheaper the company could be. Sometimes banks can work with a cheaper staff, lower technology, and an overall lower overhead. This lower overhead results in an unmotivated staff, too much volume, and a lack of communication on your loan on all fronts. You won’t get the same quality care that you will receive elsewhere. Make sure you’re also looking at the reviews and someone who has several testimonials and high quality reviews. You don’t want your loan with an excellent interest rate to fall through due to factors outside your control.
A pre-approval is not enough in today’s market. When competing to purchase your new home, you do not have the time for delays. A full credit/income approval gets all required credit and income documents in the hands of an underwriter. Once reviewed and approved, you really are “pre-approved”. This is the main step to make sure you have a flawless home purchase and can avoid big landmines later in the process.
Everyone knows that it’s not a great idea to spend money, open credit accounts, or transfer money while in the process of purchasing a home, but it still happens. Most lenders monitor credit and will perform soft pulls throughout the process of the loan. Sometimes when a new credit account is shown, it can cause your loan to be declined because your debt-to-income increases beyond the limits of the loan program that you are on. For this reason it’s a good idea to wait until after you move into your new home to purchase that new furniture!
A lot of people will schedule moving trucks to start moving before a closing date has been set. This can cause several headaches. Sometimes things are delayed. You do not want to have added expenses to reschedule your movers. Also, wait to schedule your utilities until you are closed and funded.
Are you currently searching for a new home? We’ve recently discovered that Zillow, Trulia, and Realtor.com are not real estate companies and they do NOT have live access to the MLS (Multiple Listing Service) like Realtors do. We think this is unfair and puts clients at a distinct disadvantage.
We’ve overcome this challenge by providing our clients with a mobile app called HomeScout. This app has many of the same user friendly mobile features, but unlike Zillow, has one hundred percent live access to the multiple listing services and allows clients to search for homes with the exact same power and information that Realtors do.
Why waste forty seven percent of your time looking at homes on Zillow? We’ve found that up to forty percent of their data is outdated and erroneous. Why let Zillow sell your private contact information to droves of agents and loan officers so they can prospect you endlessly? There is a better way to search for a home.
These tips are not meant to scare you out of purchasing your dream home. Rather, they are to help you avoid the most common mistakes made by others who have gone through the process.
If there is anything we can do to help or if you have any questions, please feel free to reach out to us any time.