As I was reviewing my email I ran across a blog that caught my attention. The topic was about buyers on how they can and sometimes do ruin their own real estate deals. As I read through the blog I remembered some of my buyer clients that almost did just that.
Even before most buyers are contacting an agent to help them buy a home, they try to educate themselves via the internet but sometimes forget the basic first step to get started. The mortgage pre-qualification.
Not knowing what they can afford in the beginning they begin looking at homes online that are priced higher than their financial ability and sooner or later they become disappointed when they discover they cannot have the home of their dreams. With so many homes now listed as a short sale and REO’s (bank owned), a pre- approval is a must to submit an offer.
With the market as it is today some want to buy a castle for the price of a shack and try to low-ball an already lower than market value home. They will have their offer either not countered or not accepted. When they find what they are looking for and do not make an offer because they think they can get a better deal with the next house, house hunting now turns into a marathon and not a sprint. Eventually they will find themselves under the gun, having to move and just buy anything, just to be buying something. Many times this might lead to a never ending money pit of repairs and updates. Then there are the ones who expect an undervalued home to have absolutely no issues and expect it to be in move in condition. They are surprised that the carpet is not clean, not their color choice, that some of the appliances are missing, some drywall has to be repaired, or maybe that the roof needs replacing within less than a year.
So how to avoid all of the heartaches:
- Let’s get pre-approved! Know what you can truly afford and what you might have to bring to the table at the time of closing. Please do not confuse this with pre-qualification.
- Make a list of what you are looking for in a house. What is most important and what can you live without when it comes down to it.
- What commute are you willing to have? Are you wanting to move to a rural area or are you a city dweller?
- Are you willing to do some repairs? And how much? Or do you want a move-in home.
These are all decisions that should be made before you start looking for your home. The hunt will go a lot faster and smother.
Some of them are looking for the connectivity and closeness of work, home and play. They can just keep the car parked and maybe either walk or take the bicycle to work. Others might just look for the entertainment and closeness to shopping and friends.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, which became federal law on July 21, 2010 used the term “qualified mortgage” (QM) first. You need to envision the QM loan like a funnel were everything needs to filter though and this funnel was given certain government guide lines it needs to meet. Some of this information came from the 
Just as we are getting familiar with the implemented 
Have you ever wondered if your county is one of the county’s that is popular area individual’s move to or away from?
Some areas of the US have become a hot market. Even when you are pre-qualified for your mortgage, and have a 5 – 10% down payment ready to go, you may still come up short when you compete with cash buyers. Based on the National Association of Realtors’ 
It would be great when we could all pay cash for a home. Unfortunately most are not in the position to do this and must obtain a loan to purchase our home.
Many individuals who are making out their wish list for buying a home many times just think short term and not about resale. Many of us list our needs and wants and try to match the home we are looking at only to our wish list.
