As a real estate agent I have learned so much about the home buying process. I think I have a greater appreciation for those agents that make the entire home buying process look easy. When I was a client buying my first home, I just showed up to meet my real estate agent and saw a great variety of homes. My agent was always cheerful and I trusted her advice. Now I am the one who is providing advice and guidance to clients about this market and showing them how to find the right home. I think of the juggling analogy to demonstrate the challenges a realtor may face now. First its getting your preferences, next the searching to find homes in today's inventory. The process can take 3 - 6 months for some even when all the stars line up! I hope that my clients feel that I am their advocate and will make the process easy. I know that it is very important to understand the needs and wants of my clients in order to find just the right home for them to view. But there is much that my buyers can do when they are starting to really seriously consider a new home:
Check your credit rating
Even if you're sure you have excellent credit, it's wise to double-check at the outset. Straightening out any errors or disputed items now will avoid troublesome holdups down the road when you're waiting for mortgage approval.
You may see disputed items, in addition to errors caused by a faulty social security number, a name similar to yours, or a court ordered judgment paid off that hasn't been cleared from the public records. If such items appear, write a letter to the appropriate credit bureau. Credit bureaus are required to help you straighten things out in a reasonable time (usually 30 days).
- TIP: Make sure that any outdated derogatory entries are deleted from your credit file. Adverse credit information is not supposed to be reported or included on your credit report after seven years (except bankruptcy information, which can be reported up to 10 years).
- TIP: Officially cancel inactive credit cards. If you have an inactive credit card with a $5,000 limit, even though you owe nothing on it, some mortgage lenders will consider that a potential future debt. Too many inactive credit cards with significant credit limits could keep you from obtaining a mortgage loan. Don't just cut up your extra cards; officially cancel them, and do it now so there will be time for the news to reach the credit bureaus.
- TIP: Hold off on making any major credit card or car purchases while you're waiting to apply for a mortgage. Monthly payments you're obligated to pay will be counted against you, and reduce the amount of the mortgage loan you'll be offered. Even if you've been pre-approved for a mortgage, that approval is subject to last-minute evaluation of your financial situation, and a spending spree for appliances, furniture and other goodies intended for your new home may wreck your chances for buying it.
Hopefully these tips will make the initial process run smoothly. I will be there to guide and provide lots of advice on the market conditions and what's available in today's market. Short sales and foreclosures are hitting just about every area of Massachusetts. Yes there are some deals but I hope to guide my clients to make a wise choice for their situation.
I'll post a few more tips to buying your next home!
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