I have a buyer I am representing who is purchasing a home in Tiburon. We got him locked in with his lender on a 15-year mortgage at a super good rate with favorable terms.
Here’s the funny part: one week into home shopping my buyer gets notice from his employer that he is going to be receiving a substantial raise. Naturally, he goes out and buys a brand new Mercedes GT R using a new auto loan he got approved for at the dealership.
Thinking he likely jeopardized his mortgage pre-approval I called his lender to confirm whether or not that’s the case. Fortunately, in this instance, my buyer has substantial monthly income and his debt to income ratio is still low however this is a solid reminder that there are some things you just don’t do when you are in the process of buying a home.
Check out my list of the 4 things you should NOT do when buying a home below!
1.Shopping outside your price range
Get pre-approved for a loan by a reputable lender so you know how much home you can afford.
Don’t have a lender? Reach out to me and I’ll connect you to my favorite mortgage lenders.
2. Making big purchases during escrow
Your mortgage lender will likely run a last-minute credit check. A new line of credit will probably risk your mortgage approval.
3. Submitting low ball offers in a hot seller’s market
Inventory is at an all-time low in California. Interest rates are also at an all-time low and buyer demand is at an all-time high. As your Realtor, we can work together to produce a competitive offer that will be enticing to a seller in a multiple offer scenario.
4. Don’t forget about closing costs
When you are buying a home, it’s not just the down payment that you need funds for. There are additional fees at closing you need to plan on. If utilizing a mortgage to purchase your home, your mortgage lender should give you a breakdown of your estimated closing costs.
Have questions? Reach out to me and let’s chat.
Torben Yjord-Jackson – Realtor
EXP Realty of CA, Inc.