Wednesday, June 11, 2014

3 common mistakes that home buyers make

Have you been looking for a home in the San Fernando Valley or Los Angeles? Have you been disappointed with the kinds of homes that you have seen? Have you made offers, only to lose them out in multiple bidding situations? Here are three tips to help you.

Be realistic about your finances and what you can afford. Home prices have rebounded from the recession.  They have risen, too, since you first began considering making a purchase. Home inventory is really low as well which results in more buyers chasing the same few homes. If you find yourself in a multiple offer situation, price is going to matter to your seller much more than your good looks. If you love a home, but will be really stretched to afford it, or if you do not have a decent down payment for the home price range that you are looking in, you may want to wait awhile and save up more money.

Before you begin home shopping, get pre-approved for a mortgage loan by a local lender. I've said this before. Now is the time to shop for a lender and rates, not on a Sunday night after you have visited the open house of your dreams. This is important because most sellers and listing agents will look at your financial qualifications before they review your home offer. Your lender will be able to look at your financial profile and determine how much you can comfortably pay. A good lender can also coach you regarding cleaning up credit, straightening out financial issues, and qualifying for the best loan programs.

Write good offers. A home purchase offer contains much more than just the price, and your Realtor will be able to advise you on how to make your offer stand out. Put down a decent deposit. Find out in advance what your sellers' moving dates are and try to accommodate them. Shorten your contingency periods if you can. Think twice about asking the seller to pay for any of your closing costs. Yes, a letter explaining who you are and why you like the house will usually be helpful, too. Make sure to include a picture of your kids and pets.

Hopefully, you will now be better prepared to get the house you want. Happy house hunting -- your perfect home really IS out there.

1 comment:

  1. I wish I had seen this last year when we were in the market for a new home. My husband and I were buying our first house, and we didn't understand how much it was going to cost us. We weren't very realistic with our budget from the very beginning.
    Emily Merrell |