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Working with an Agent when Buying a Home

posted by Stephen Katz @ 5:50 PM
Tuesday, April 23, 2013

 

Experienced real estate professionals handle such a multitude of transactions and personality mixes, there’s little they haven’t heard before. Your advisors are representing your best interests and have a fiduciary responsibility to do so.

They can’t help you if they don’t have all the pertinent information. Plus, they will likely have a better solution or idea for you than you can come up with.

If you have cold feet and have thoughts about backing out of the transaction, talk to your agent about those feelings. He or she can help walk you through fears and questions. Pros will help you to determine if you really need to cancel and, if so, manage the transaction properly so that you can get your deposit back.

#1 Blunder: Altering Financial Pictures Prior to Closing

When I bought my first home, I easily qualified because I had no car payment or revolving debt. A week before closing, I bought a new car and financed the purchase. New ratios meant I no longer qualified. A frantic phone call to my father, begging him to lend me the money to pay off my car loan was the only tactic that saved me from losing the house.

Today’s homebuyers make the same mistake. Do not buy anything on credit and / or with a credit card once you have completed a loan application. Do NOT buy:

* Automobiles
* Large household appliances
* Lawnmowers or garden equipment
* Expensive electronics or computers
* Furniture for your new home

Slight changes in your credit ratios could cause the underwriter to throw out your loan and deny it. If your loan contingency has expired or been removed, you could forfeit your earnest money deposit in addition to losing the home.

#2 Blunder: Buying the Wrong House

The very first thing homebuyers should do is make a list of priorities and define home purchase objectives. Figure out what features and benefits are most important and which you can live without. Before you close escrow, review this list. It’s easy to overlook a major factor that could come back to haunt you later.

A buyer looking for a home in a midtown neighborhood, 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 teenage daughters 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. If the market had been depressed, she could have lost everything, like this next guy, instead of simply spending a lot more money than was necessary.

Another buyer purchased a home that cost him about $75,000 more than he was comfortable spending. But he fell in love with the Victorian character: the high ceilings, sparkling chandeliers and wide-planked floors. A year later, he could no longer afford to make his payments. The house was too expensive for him to maintain. He would have been better off buying a smaller home in a more modestly priced neighborhood. But he let his emotions cloud his good judgment.

Stephen Katz

(770) 309-0939 (direct) or (866) 742-8400 -- For the past 18 years, Stephen Katz has built a successful business almost entirely on referrals. As your mortgage consultant throughout the home loan process, Stephen will explain the pros and cons of all available mortgage programs and help you choose the financing option that is best suited to your needs. Throughout the loan process, he will keep you informed and will respond quickly to your requests with answers and solutions. Consistently a top producer, Stephen is a Mortgage Bankers Association "Diamond" Award winner, a Georgia Mortgage "Top Gun" and has closed almost half a billion dollars in loans. Put his knowledge and experience to work for you!

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