Checklist for Home Buyers

As you venture into the housing market as a homebuyer, you will definitely sleep better at night if you work at avoiding these common mistakes. The process of buying a home can be fraught with anxiety and stress, however, there are some simple steps you can take to minimize that possibility.

1. Work with a trusted consultant. Whether your trusted consultant is your real estate agent or your real estate lawyer, make certain to give them a total and honest picture of your situation. Don't hold back or embellish the facts. Simply be honest. Experienced real estate professionals have handled a multitude of transactions and dealt with a variety of personalities. Chances are they have heard it all before. Your consultants are representing your best interests and have a fiduciary responsibility to do so. They can't help you if they don't know what you've done and what you are doing. Plus, they will likely have a better idea for you than you can come up with on your own.

2. Maintain a stable financial picture through closing. A perfect example of what can go wrong here can be seen in the case study of Jane Q., who easily qualified for her first home purchase. In her excitement, a week before closing, she bought a new car and financed the purchase. A red flag went up because new debt to income ratios meant she could no longer qualify. After frantic phone calls to friends and family to help her pay off the new car loan - no easy feat to be sure - she finally had what she needed to reduce her debt to a lender acceptable level. Learn from Jane Q.'s mistake and do not buy anything on credit (whether it's a credit card or a financed purchase) once you have completed and signed the loan application.

3. Be absolutely certain this is the house for you. Why is this even worth mentioning? Because too many people make emotional decisions when looking at properties instead of being appropriately prepared in advance. The first step every home buyer needs to take, is to make a list of their priorities and define their home purchase objectives. Start by writing down those features and amenities that are top priority to you, and list those things you simply cannot live without. Some other factors may be negotiable, but this particular list is not. Prior to closing, your initial list must be reviewed.

An associate recently shared this true story. "A buyer looking for a home in midtow
Sacramento, Califo
ia, found herself swept up in the excitement of buying a home that was a bit less than she actually needed. She convinced herself that having one bathroom was suitable, but discovered shortly after closing that sharing a bath with two grown sons was impossible. It caused her so much tension and strain that she sold less than a year later. It cost her money to sell and more money to buy a two-bathroom home in another neighborhood."

Because she didn't have a firm grip on her home buying priorities, it cost her way more than she was willing to spend. It's very easy to get caught up in the momentum of purchasing a home, but overlooking a major element could come back to haunt you later. "Better safe than sorry", as my grandmother always warned.