5 Ways to Screw up Your Home Buying Experience
When it comes to buying a house today, what you don’t know will absolutely screw up the deal. Everybody, from the people you work with, to all your relatives and your friends, will all have horror stories about THEIR real estate deal. Granted, there are deals that get screwed up on occasion, but if you have a good team working for you, YOU shouldn’t have any problems. It’s my job to handle the problems and the stress and to make your real estate experience a pleasant one. But here are the top 5 things you can cause yourself:
- Not getting preapproved first. If you don’t do this in the beginning before even looking at houses, nobody can make the deal go well. That’s what I call, putting the cart before the horse. It just makes life difficult. Also, do not pull your own credit report (it could change your score). The lender has to do this step per their guidelines.
- Not being honest with your lender. OOPS! I’ve had buyers fail to tell their lender about student loans, a past bankruptcy, child support and alimony, embezzlement, etc. You must realize that it will come out sooner or later. You want to be upfront with your lender in the very beginning.
- Not being honest with me regarding your thoughts on houses we see. I don’t care what you like or don’t like – it’s not my house and you won’t offend me. I will be the first one to tell you what I don’t like. Also, if you decide to change your price range, it’s ok. We haven’t wasted time, it’s all a learning experience.
- Not asking about any questions you may have. I want you to be very clear on the whole process. Don’t ask the guy at work – he doesn’t sell houses!
- The biggest thing that will screw up your home buying experience is your money situation. Just make sure that once you apply for your loan, DO NOT under any circumstance:
- Buy a new or used car
- Move money from one account to another
- Make any major purchases (furniture, appliances, etc)
- Apply for any new credit cards
- Run up the credit cards you already have
- Do anything that would pull your credit report again
- Change banks
- Make deposits of money you’ve had hidden under the mattress all these years
- Deposit money from parents without an authorized “gift” from them – your lender needs to approve this gift
All of these things will throw up a red flag to your mortgage company. You could be forever trying to talk your way out of this but they will never hear you. If you’re looking for furniture or appliances, “just look” – never buy until you get the keys to the house. Your lender can and oftentimes will re-verify your employment and debt right before closing.