The market in Buffalo is extremely competitive. If you’re ready to make the jump into purchasing a home, it’s important to avoid these mistakes.
1. Don’t shop without an agent
You don’t have to start your search with an agent. It’s okay to look online at homes you might be interested in and it can even help you get a feel for the current market. However, when it comes time to get serious, it’s important to have a professional in your corner. You need someone to help navigate you through the process. Every situation is different, and your agent is experienced in closing the deal even when the sale moves into unconventional territory. “You need someone who understands the process and will keep your best interests as their top priority. That’s what we’re here to do.” said Buffalo First agent Ken Smith. If you’re looking for help navigating the home buying process, Click Here to speak with an agent.
2. Don’t meet with just one mortgage lender
The mortgage process can be daunting. Two years of W-2s, two years of tax returns, and proof of funds for the down payment are only a few of the documents you’ll need to provide. Don’t let the paperwork deter you from getting multiple mortgage quotes! We recommend that you get quotes from at least three lenders so that you can find the loan the best fits your situation. If you need help getting started, ask your agent for suggested lenders. They’ve worked with a large pool of lenders and can direct you to institutions that will help you through the process. Another option should you need it, could be to use a mortgage broker. A Mortgage Broker is a go-between between the borrower and the lender (usually a bank), who negotiates the loan on your behalf. They will do the legwork on researching products on the market from the hundreds available, and then support you through the application and settlement process.
3. When it comes to budget, be honest with your agent
It might feel like the best course of action to keep your cards held close and not disclose your true budget to your agent. “Our goal is get you the home that is a good fit for you. Some people worry that their agent is going to make them buy the most expensive house in their budget, but that couldn’t be further from the truth.” says Ken. “If you understate your budget, your agent could be excluding homes that would be a great fit because they don’t believe it is within your budget.”
4. Don’t make ridiculously lowball offers
Don’t lose out on a home you love by lowballing the seller. Everyone wants a deal, but it’s important to think about how some offers can be perceived.
“Don’t offend a home seller by ignoring market data and submitting a ridiculously low offer. Some home sellers might not even be willing to make a counter offer.” says Ken.
Talk to your agent and get their input on the offer. They have experience in these negotiations and can help you come to a fair offer for both parties.
5. Don’t make any large purchases before your close
So you’ve had your offer accepted, congratulations! Don’t jump the gun and start buying new furniture or a car to put in the garage quite yet. Your loan still needs to go through the underwriting process. During this, your credit score will be pulled again to make sure it hasn’t changed significantly since you were preapproved. If the underwriter finds that you’ve opened a new line of credit and that has an impact on your score, your dream home could remain just that, a dream!