12 HARD COLD FACTS YOU NEED TO KNOW ABOUT BUYING A HOME

    1. You must be Pre Approved

 This is a A critical first step.

As a Buyer, you need to know how much home you can afford to buy and by knowing exactly how much of a mortgage your lender says you are eligible for.

 Pre Approval requires a Lender’s review of your credit, assets and income and expenses. This is not a casual conversation with your Lender. The Lender must HAVE THE DOCUMENTATION TO VERIFY your credit history and all your income and expenses.

Pre Approval is the only way to know what price home you can afford to buy.

 

      1. Don’t start to look at homes until you’ve been Pre Approved

 You will eliminate possible future disappointment.  First Looking at homes priced higher than what you can afford, and  submitting an offer only to find you can’t get financing means that you have to start all over to find a home you can afford.   Second is Losing the home you love to another Buyer that came prepared and submitted an offer that included a pre approval letter. 

 

      1. Know that your money will only buy so much

 Realistically determine your wants vs. your needs.  Rate each home you see what percentage in each category it provides and choose the one that best meets all your needs and as many wants as possible.

 

      1. Don’t make any major purchases while buying a home

Even with pre approval, any major purchase can halt your loan approval when it reaches underwriting just before closing.  Don’t buy of furniture, cars or any other large items until AFTER you closed on your new home purchase.

 

      1. You will need to be flexible to get the home you want

  This same advice is provided to home Sellers. To close a deal, you need to come to a mutual agreement.  Negotiation requires give and take from both parties. Flexibility can go a long way in getting you the home you want.  Don’t risk losing the home you love over little things.

 

      1. Don’t submit low ball offers We are in a seller’s market.

With an all time low number of homes for sale and high rates of sales. Sellers have the advantage in these times of scarcity. Low ball offers can risk you owning the home you truly want by making the Seller angry and they know there will another buyer soon.  Talk with your Realtor to make sure your offer is fair to you and the seller.

 

      1. Similarly don’t risk the home you love, over a little bit of money

Expect negotiations in a home sale.  Do you really want to get down to bickering over a relatively small amount of money.  Take a step back and re-evaluate what the home has to offer and could you find it easily elsewhere for less?   Set aside emotions and look at the big picture.

 

      1. Expect the home will have needed repairs

After the Inspection don’t argue over the little things.   Be more concerned about the major repairs and how they can be resolved.   Expect that the Seller will not do all the repairs the Inspector notes

 

      1. A well maintained home will demand more money from you

Do you love that home that you just looked at and want to buy? It was obvious how well cared for. Everything was orderly, neat and clean. This will not be the home you’ll likely get at a discount.  These type of homes draw prospective Buyers like bees to honey.  Prepare your offer to be attractive, because if you don’t there’s another Buyer standing in the wings ready to buy this pristine home.

  

      1. Buying a home price at fair market value is a good thing

Real Estate is considered a great investment especially in Las Cruces where the market is growing and prices are rising. Present your best offer after careful review with your Realtor based upon recent, comparable homes sales. If the Seller has hired a top notch Realtor, their home should be priced right and will likely draw many eligible prospective Buyers.

 

      1. Cash can sometimes be King

I know, you hate to hear that when you’re financing your home purchase, however it ‘s true.  If your conditions and price are favorable in the Seller’s eyes … you then you can compete with the  Cash offer…particularly if they present a low ball offer because they think Cash is King.

 

      1. A skilled Realtor is worth their weight in gold

The Realtor you select is your trusted advisor, advocate, expert negotiator, and should have only your best interest in mind. In real estate, as in life – not all things are created equal. A REALTOR is a Professional just like your Physician, or Attorney. It is critical that you hire the best.  Be sure to select the one with the best Credentials, Experience, and a reputation for providing each and every home buyer with “premier” service.