Making the decision to find a new home is pretty simple. What follows is where it gets tougher. Here are a few things you can do to make the process more enjoyable and fun!
DO — Get Pre-Approved First
Before you ever make that first showing appointment with your agent, do yourself a favor and talk to your banker/lender first. This can save you a lot of headaches and heartaches.
After getting pre-approved (NOT pre-qualified) , you will know — not “think” but know — how much your lender is willing to lend you. This is based on a whole lot more than just your annual income. Your mortgage lender will get W-2’s, tax returns, credit reports, bank statements and the like and be able to tell you the highest amount you will qualify to spend on a new home.
Of course, you don’t have to spend that much but knowing your limit is freeing! You can now concentrate on homes within your range without worrying if you can qualify for them. It’s just one little headache you can easily avoid.
After all, you don’t want to fall in love with a home, make and offer and then find out you can’t get approved for that amount. It’s heartbreaking. The rest of the homes will pale in comparison. Find out up front and you will be much happier.
A pre-approval is usually free and doesn’t take too long. Then you can home shop to your heart content!
Do — Find Your Agent
If you don’t already have a real estate agent, find one prior to looking at homes. As the buyer, you want your own representation — a buyer’s agent — working for your best interests. Avoid calling the phone numbers on the signs in front of houses. Those agents represent the seller and their best interests.
Simply write down the address or MLS # of a home you want more info about and your agent will take care to get it for you!
Do Look Online to Narrow the Field
97% of buyers start their search online. This is a GREAT innovation and will save you a lot of time in your search. Most local MLS’s send their info out to sites like Realtor.com and the like. You can search for anything, anywhere using the search criteria on the sites. If you know your pre-approved amount, search within that parameter as well.
The internet has made it a lot easier to narrow the field of choices when buying a home. Nationally, the average number of homes buyers physically see before buying a home is 10. However, people look at a lot more than that on the internet and weed out the ones that just don’t fit.
Use the internet! If your agent is like me, they also have an app available on iTunes and the Google Play Store for your phone or tablets that will show you homes on the go! Mine is available through Keller Williams app and agent # is KW2GG0OQ (the 6th digit is a zero).
Don’t Get Too Many Friends and Family Involved
It’s nice to have the opinion of those that know you but ultimately, you will live in the home, not them. I encourage my buyers to narrow it down to 2 or so and then only bring mom, dad or your BFF if you really just can’t decide.
As my dad says, “Too many chiefs and not enough Indians is not a good thing!” You shouldn’t have to justify your decision to anyone or hurt anyone’s feelings if you don’t go with the house they recommend. Be careful asking others to go with you for showings…
Don’t Spend Too Much, Even When You Qualify
Part of the housing downfall was people being “home poor”. They bought homes that were too big for themselves and their families just because they could. In the long run, a lot of them couldn’t keep up financially with the payment, furnishing it and maintaining it.
It’s a smart move to sit down with your lender and come up with a monthly mortgage payment you are comfortable with, equate that with a price for a home and then stick to it as you begin your house hunt!
Don’t Give Up
Our team of REALTORS® have had a few clients get depressed with the process. One couple is pre-approved, ready willing and able to buy a home. However, more than once, they set up a showing only to find out it has gone pending a few hours or day later. (One GOOD reason your REALTOR® encourages you to jump when you find one you love. Chances are, someone else will love it too!)
Another couple just can’t find the right home for them. Patience is definitely a virtue when house hunting. Remember, there is not usually a “perfect home”. They are more like “close enough” or “almost perfect”. Don’t hesitate when you find it — make an offer!
And, DON’T GIVE UP! You will find a home in due time.
Buyers almost have to have a bipolar personality — Be patient until you find it and then jump in with both feet and make an offer!
