What Not To Do When Buying A Home
Please Just Don’t Do This!
Buying a home is a very exciting thing. Once the decision is made to purchase a home, most people are just so excited to get out and get looking for their new digs.
You meet with your lender of choice, get preapproved for a home loan, everything is verified and you’re set to get looking.
You get out there with your FAVORITE Realtor, that would hopefully be me, and we find the perfect home for your budget. We make an offer and it gets accepted on the first try!
Now that is exciting!
It’s time to do our due diligence. We do a pest inspection that costs roughly $100. We do a home inspection report that could be between $299 to $499 depending on the size of the home and construction. Then there is a roof inspection that costs $200 ish. We’re done and everything looks good!
You’re so thrilled this is going so smoothly..everyone is thrilled! Your kids, if you have them, are jumping for joy. Your Mom & Dad can’t believe their babies are buying their first home.
You’re totally within your budget payment wise but the debt to income ratio was a little high but not high enough to prevent you from being approved. You’re good to go!
You’ve got 14 days to go before closing and you realize you’ve got no furniture for the spare bedroom. The spare bedroom is something you don’t have in your current home. You’re going to need a new bed for that room and maybe night stand.
The next day, you go to RC Willey and they’re having a sale on just what you need. You’re trying to conserve your cash so you decide to open up an account with them and they approve you on the spot. The bill comes to about $3500 or so and it will be delivered exactly when you need it as you’ve got nowhere to store it until you close on your new home.
Done!
Done!
Yes, you are DONE!
The following Monday, your lender pulls the final credit report for funding your file and suddenly your debt to income ratio doesn’t work. The additional furniture expense has just showed up and now you don’t qualify for the loan.
On Tuesday you get the call from your lender. You hear the news and you’re beyond disappointed. You can’t qualify for the home you wanted because you’ve got too much debt. Your Realtor calls and says that because all contingencies of sale were released, you’ll have to forfeit your entire $3000 deposit to the seller.
This is not a good day.
What once looked so rosy, so smooth and so shiny is now a pile of poo. You’ve lost your new home, your deposit, the cost of inspections and most of your self respect.
Sound far fetched? I just had this happen last week. I came into the situation with the buyer late after another agent had dumped them. All the damage was done before I could let them know what not to do. I’ve been selling homes for 13 years and I’ve never had it happen before.
Surprise! LOL It was no laughing matter but what else can you do? Cry. Yes crying works too. Don’t be a cryer…just say no!
The Lesson: When you’re in the process of buying a home, do not go out and do ANYTHING that will show up on your credit report other than paying your bills on time and reducing your debt. Do not buy anything on credit at all. No furniture, cars or ice cream…Nothing. Let it all ride until after you close escrow. Then you’re home free, no pun intended, and you can go buy what ever you choose.
Buying a home in Rocklin, Roseville or Lincoln? I’d love to help you. Please call, text or email me at your convenience.
Buying or selling a home in Rocklin or Roseville? If so, I’d like to help you. Please call or text me directly at 916-532-7653 or click here, for my contact page.
Saxe Realty Services is the most comprehensive online source for Rocklin and Roseville real estate information. Whether you are looking for the latest sales, trends or homes for sale in Rocklin or Roseville, Saxe Realty Services has it all at your fingertips.
Subscribe to Saxe Realty Services by Email
