Enter Blog Post Here
- “I got a new job!” Don’t get me wrong, I’m all for career advancement, but when it comes to financing, lenders love stability. I’m not saying changing jobs can kill your chances of homeownership, but it could delay it. Most lenders or brokers will want to see pay stubs, T4 slips, letters of employment (that state you are not under probation), etc. If you are in a brand new job, a lender may want to see you there for a while before they're confident in loaning you several hundred thousand dollars.
- “Check out my new F-150!” (see also: Boat, RV, Quad). Basically, don’t finance anything while you’re shopping for a house. Even if you are shopping for a house under your budget, new financing can affect your debt service ratio to the point where you may not be able to get the home that best suits your needs. Even that new boat financed over 20 years at $150/month can have a huge impact on your home buying experience. (buy it after you move in, no judgment here)
- “Can I bring my parents to have a look?” I should preface this with some clarification. I welcome parents to come along, especially with first time home buyers, but bring them from the beginning, or at least before you write an offer. I’ve seen it time and time again, a buyer finds “the one”, writes an offer, we negotiate hard then mom and dad get involved and scare the crap out of their kids to the point where they walk away from the deal. If there’s a legitimate reason to be skeptical, or fearful about the property, your realtor should have already had that discussion with you (reason #786 why you need to shop around for the RIGHT Realtor). If there is anyone besides yourself involved in the decision-making process, or helping out financially, involve them in the whole process, everyone will feel more comfortable.
- “We walked into an open house/show home on the weekend and wrote an offer” First of all if a REALTOR® hears this, it’s mostly their own damn fault for not properly educating their client. Just so everyone is on the same page, I will explain here. Your REALTOR® should go to work for you and help you find ANY property. This includes homes on MLS, brand new homes not on MLS yet, homes yet to be constructed, and for sale by owner properties. If your agent is not finding you what you’re looking for, or they aren’t communicative, or they simply suck, then ok do what you have to do. If your agent is working for you and is doing everything they can to find you the perfect property, please include them in any homes you happen to drive by or stumble upon, this is after all how we earn a living. Nothing comes out of your pocket to pay an agent when purchasing a home, so there’s no downside. (not to mention, wouldn’t you rather have someone representing your interests only, and not that of the seller???)
- “The bank told us we can afford $500,000, but this one is really nice ($700,000)” I love the internet, it’s useful for many things, maybe most importantly…memes. I’m reminded of these ones often.
Shop within your budget, there’s nothing more deflating than seeing someone fall in love with a home, then to later find out that they cannot afford it. As much pre-qualifying as I try to do with buyers, sometimes we don’t get the whole truth, and we should all try to save some heartache by being reasonable and shopping within our budget.
Jesse Loader is the founder of the Loader Real Estate Group with eXp realty.