Happy Monday! I had a long discussion with a first-time Buyer over the weekend, which make me consider today's blog. Here ere three REALLY important "Things NOT to do" when you're getting ready to buy a home-- for the first time or any time thereafter!
#1-- DON'T OVERSPEND. Own your home, but don't let your home own you. Buying a new home is a always a big deal, and you definitely want something that will at least work for your 5-Year plan, but do not let yourself get wrapped up in "keeping up with the Joneses". Before you start home shopping, consider what are are REALLY comfortable paying on a monthly basis, and get pre-qualified with your Lender. Stick to your budget.
If you aren't currently connected with a Lender or Mortgage Officer, please contact us for our list of recommended professionals!
#2-- DON'T MAKE ANY LARGE PURCHASES! If you are planning to buy, be very careful about making large purchases as this can COMPLETELY RUIN your loan/mortgage options. Any changes in your credit (such as a new debt), can alter your debt to income ratio. Even if you make a large cash purchase, BE VERY CAREFUL, as Lenders often require you to have cash in savings that will cover several months of your new mortgage payment, taxes and property insurance. I see people get excited about Buying and start thinking about new furniture, new appliances, new cars, and even engagement rings, WAIT UNTIL AFTER CLOSING.
#3-- DON'T DO IT ALONE. With so much information at our fingertips, it's tempting to consider navigating the homebuying process alone. Don't do it! HIRE A REALTOR to help you through this process! So many new Buyers just "call the Agent on the sign". Keep in mind that the Listing Agent on the sign is working for the SELLER. Legally, the Listing Agent can facilitate the transaction between the Seller and the Buyer as what is called an "Intermediary" in Texas, and they are under the obligation to treat both parties fairly in that situation, but they CANNOT negotiate in your favor. Also, do not be fooled into thinking that you will get a better deal by going this route-- the Listing Agent just get to keep the whole commission instead of sharing it with a Buyer's Agent. However, as a Buyer, the Seller (unless it's a For-Sale-By-Owner situation) and Listing Agent have already contractually planned to pay a Buyer's Agent for bringing them a ready, willing, and able Buyer. In a nutshell, that means that you, the Buyer, don't even pay your REALTOR, the Seller does! Why would you NOT hire you own representation?
A real estate transaction is a serious and involves a legally binding contract with legal responsibilities. Take your time and interview multiple professional and full-time agents that will represent your best interests and ensure that your transaction is completed legally and in totality with limited liability. We would love for you to select South Coast Real Estate to serve your needs!
I hope someone finds this information helpful! Have a great week!