Buying a home can be a very stressful experience – unfortunately! Even for those totally prepared, there can always be something that makes the process a bit more crazy. Working with professionals helps, but here are some things to be aware of.
1-Make sure you have enough money saved for your down payment and closing costs. Make sure you don’t have cash deposits into your checking/savings account that may affect the money an underwriter will allow. Ideally you want a cushion to cover any unexpected expenses when you move.
2-Shopping out of your budget. Looking at homes that are just above your budget is a great way to lose a home as you may not qualify for it, plus you will compare other homes to your “dream” home. With interest rates increasing, keep your budget in mind and stay under it.
3-Lose a bidding war. If you are in multiple offers, you need to present your best offer quickly. Work with a realtor that will negotiate on your behalf and be prepared to make quick decisions.
4-Buyer’s remorse. I see this happen – you decide this is the perfect home, write your purchase agreement and then back out because you get cold feet. Trust your instincts, work with a great realtor and know your budget – that can help you avoid buyer’s remorse.
5-Inspections take too long. There is a deadline on your purchase agreement for the inspection. You do need to allow time to get an inspection done and then allow more time for any potential negotiations.
6-Appraisal comes in low. This was happening this spring and summer as there were many multiple offers and they pushed prices up. When that happens, it is more common to see low appraisals. Work with your realtor to make sure the home you are buying is priced right. If the appraisal comes in low, you can negotiate with the seller, walk away or bring more money to closing. Sometimes you can try to get the appraisal value adjusted but it’s not always easy.
7-Your mortgage is declined. Maybe you had a preapproval, but something changed – or maybe your income or assets weren’t verified correctly. Make sure your mortgage approval is valid, that your income and assets have been verified. Do not buy anything on credit before you close on your home.
For many home buyers, these things will not happen – but you never know! For some, the stress simply comes with the process! As easy as we try to make it, we still need documentation up until the last minute for some. For others, it’s easier during the process but maybe it was harder to find a home and get your purchase agreement accepted. As you go through the home buying process, stay in touch with your realtor and loan officer – make sure you get your questions answered and hopefully it will lower your stress level! I want the home buying process to be fun, but I know it doesn’t always work that way!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
