If you want to jump into the housing market with a little more credibility – read up on the mistakes you should avoid. The more you know….right?
Basing your home price on the max amount you qualify for.
You really need to like your mortgage payment as much as you love the house. Otherwise, you are very quickly going to regret your choices. When we pre-underwrite you, we will let you know the max loan amount you qualify for and then work backwards from there to find a down payment and monthly payment that you are comfortable with. It’s key to have your mortgage advisor run numbers on a prospective house before you go see it. I like my clients to know the amount of money they’d be spending to purchase the home and each month while they are walking through the property for the first time. You’d be surprised how much this impacts the decision.
Instead of shopping around for lenders, ask better questions.
Time is everything these days. Yet, conventional real estate advice would tell you to apply with multiple lenders and get several rate quotes. You won’t be surprised, but I’m going to deviate from this. Instead of sending your personal information out all over town, ask the right questions until you find someone who answers them to your likely, and then you’re done.
- Tell me about how your experience in the real estate industry. How often do you close on time?
- What can you tell me about loan programs and financing options that Google can’t?
- What is your long term plan for me, following closing? How will you help me accomplish the rest of my financial goals?
Withholding information from your lender.
I want you to think of me as your attorney. Tell me everything so we can plan accordingly. Where are your down payment funds coming from? I will help you set this up so the paper trail is clean and easy – for both us. Are you thinking about switching jobs? It’s ok, let’s just talk through the potential scenarios. Is there a new auto loan that’s not popping up on your credit report yet? You didn’t dodge a bullet, I will find out about it – so just tell me. The more I know about your finances, the better I can handle your mortgage.
Don’t start looking online before you meet with a realtor and lender.
Why set yourself up to fail? Know what you can afford before you start shopping. Simple enough so just do it.
Taking the process too much to heart.
Home is where the heart is. But that starts after it becomes your home. While you are searching, try as hard as you can to remember this is a financial transaction for you and the seller. Don’t make the seller a demon and don’t get attached to every home you tour. Keep a level head and trust your realtor and lender’s advice – they do this all day, every day and they can help you do it right.