GET YOUR CREDIT IN ORDER AND BE PREPARED
We'll assume if you're in a position to buy a home you're clever enough to know that credit is important. With that being said do have a look and clean up anything that could create red flags with the lender. What you should know is get your pre-approval letter. Not just a thumbs up from the bank but an actual letter advising specifically how much you are approved for. If you're ready to pull the trigger on a property 3 things are vital when making an offer.
- Your pre-approval letter. Know your budget. Regardless of how much the bank has approved you for be conservative.
- Your proof of funds that will satisfy the downpayment necessary...and then some. Remember 25% down is standard for a loan and keep in mind closing costs at minimum add and additional 1.5%
- A good Real Estate Agent that will take the time to properly prepare a purchase agreement and review step by step the various contingencies and other ways in which to assist or insure in making your offer the winning one.
DON'T GET EMOTIONAL AND WHATEVER YOU DO DON'T PANIC
I know this one might sound silly. You're making the single most largest investment of your life. You've found the home you're meant to raise your kids in and I'm telling you not to get emotional. Yes that's exactly right. Here's why...
- Depending on the markets climate you may need to prepare yourself for submitting a few offers before finally getting one accepted. If you've been paying attention to our Westside market you know what I mean.
This isn't necessarily always the case but when working with minimal inventory and hungry buyers these things unfortunately do tend to happen. I know that's not what you want to hear but I'm here to tell you the truth. Be realistic from the start and by managing expectations you'll ward off a lot of unnecessary emotional stress. Trust me.
- You have an accepted offer (YAY), we've scheduled the inspection, the report comes back and it's 80 pages long, you're horrified. Don't be this is completely normal. Unless you're a contractor a lot of the inspectors verbiage will sound like a foreign language.
Keep calm your Real Estate Agent will explain everything, generally you'll find they're very small fixes so you panicked for no reason at all. Should there be issues that requires a specialist 9 x out of 10 these issues get handled just as well, perhaps not as swiftly but like I said completely normal . Should the issue be a major one then consider yourself lucky for having dodged a bullet. These practices are in place to protect you.
CHOSSE YOUR LENDER WISELY
This one is particularly important. Choosing the wrong lender could result in losing your dream home to no fault of your own.
I won't mention any names here but do your research, ask questions, not just of the lender but of your peers. What experiences have your friends had. Listen to your Real Estate Agent...we know.
Don't necessarily go with our referral but ask for a few and go from there. Best rates are important of course but read the fine print, speak to an advisor.
Don't be fooled by enticingly low interest rates that could potentially sky rocket after a few short years. And just remember after all, this is normal.