Buying a home in King County, especially if it is your first one, can be both exciting and overwhelming.
If you are like most people, you may not realize how many ways you are preventing yourself from being able to buy a house. There are even a handful of things you could do while the house is in escrow that could cause the deal to fall apart.
When it comes to significant life moments like buying a house, knowledge is power. In today’s post, we are sharing seven common ways that you could get in your own way of buying a home.
1. You Waited Too Long To Get Financing
Financing is one of the most crucial moments in the house buying process. When getting ready to buy, many sellers will give significant preference to those buyers that come to the table with their financing in order. Not to mention, shopping for your dream home without knowing how much you can afford is like putting the cart before the horse.
2. You Chose A Random Lender
The very first step you should take when buying is reach out to your favorite local real estate broker and ask them to refer you to the best local lender for your personal circumstances. There are many lenders out there that will take advantage of you or do sloppy work that will cause you to lose your dream house. Therefore, you will always want to choose a lender that is trusted by your local real estate broker.
3. You Only Got Pre-Qualified, Not Pre-Approved
Many people confuse getting pre-qualified and pre-approved as being the same thing. However, that’s a mistake that can hurt you in more ways than one. Getting pre-approved has far more requirements than getting pre-qualified which can be accomplished with a conversation with your local lender. Just because you get pre-qualified, it does not mean that you will ultimately get approved for a mortgage. Submitting a pre-approval with an offer on a house gives you a serious competitive edge over other offers and give you more leverage for negotiating terms.
4. You Aren’t Looking At Homes You Can Afford
This may seem obvious, but it is very easy to get swept-up in the process of buying a home and start looking at properties you can’t afford. Spending hours pouring over all of the extra bells and whistles in more expensive houses which will cause you to turn a blind eye to perfectly lovely homes within your price range.
5. You’re Submitting Low-ball Offers That Insult Sellers
Settling on a purchase price is a decision that should not be taken lightly or made without the expertise of your real estate broker. They use hard statistics and logic, along with a report called a comparative market analysis to determine a fair price and advise you. Submitting a low-ball offer to sellers is likely to make them angry and maybe even ignore your offer altogether. In fact, many sellers become so insulted by low offers that they will refuse to accept any further offers no matter how generous.
6. You Made A Big Purchase While In Escrow
One of the fastest ways to shoot yourself in the foot and destroy your deal is to make a large purchase while the house is in escrow. Making a large purchase on credit like a car or furniture for the new house changes your debt to income ratio, and could sabotage your eligibility for your mortgage. Your credit report will be rechecked right before closing so make sure you put a freeze on opening any new lines of credit until after closing.
7. You Forgot To Save For Closing Costs
Don’t make the painful mistake of forgetting to save for your closing costs. If you are not able to afford your closing costs, you won’t be able to fulfill the settlement. When that happens, you will be failing to uphold your end of the contract and could likely lose your earnest money deposit to the sellers.
Want To Buy Your Dream Home In King County, Snohomish County, or Kitsap County?
Buying a house in King County, Snohomish, or Kitsap County is a dream come true. It can also feel like a scary or overwhelming process when you are trying to navigate it alone.
The best way for you to protect your best interests, secure a smart loan, and negotiate the best deal is to get help from an experienced real estate broker in King, Snohomish, or Kitsap County.
Click here to find the best local broker to help you get a great deal on your dream home in King, Snohomish, or Kitsap County.