Never let it be said you had not been forwarned. While we have been doing real estate, representing real estate buyers and sellers since 1998, I will say there is a ton of misinformation still on the World Wide Web.
Information is more easily obtained. That goes for bad info, it too is more easily found.
So many folks are attempting to get their hands to go to the deepest part of your pockets, it's amazing we have anything left.
When buying a home - here are 8 dumb reasons why people are unable to buy real estate per their needs, wants, and desires.
These items can be addressed - just don't wait too long to do so. We represent real estate and home buyers within the Santa Clarita CA and Valencia CA regions within Southern California.
I'm Connor and I'm Glad to be of service to you and yours with real estate consultation services in Santa Clarita - Valencia CA.
Reason 1 - The dumb of waiting
Financing, borrowing money to buy a home. Waiting until the last minute to get this done will equate to you missing out in a seller's market. Especially of the home, you are wanting is within the sweet spot. In the Santa Clarita and Valencia CA cities - the sweet spot of real estate currently during this seller's real estate market is from $480,000 - 650,000. The homes have at least three bedrooms and are within blue ribbon school districts.
Don't wait until the last minute when it comes to getting qualified for a home loan. The approval process could take a few days to do it right and most real estate lenders, who are worth their salt, want to do it right. Those lenders are well known within the local real estate communities, so make sure you are working with the right people in the local lending profession.
Reason 2 - The dumb of Late Night TV Lenders
Have you been up at 0330am watching TV and cannot fall asleep? I broke a couple of ribs last week and I'm typing this at 0135hrs. Yes - that's very late or early depending on how you look at it. I find it easier to miss a little sleep than to move in bed wincing with pain.
If I'm not working, I may be inclined to look to TV - there are a lot of lenders promising you the world. My experience of working with thousands of real estate buyers during the past 20 years, is that most overpromise and under deliver.
In addition, some will wait for zero hour and change the numbers on you. Then they are 4 hours ahead, because they are located on the east coast, and you miss out on an offer because they were not contactable.
You get stuck and cannot fix the issue. Should you proceed or cancel everything? If you cancel your deposit will be sacrificed. Plus, this is only one issue that could arise causing you pain. There are others you will encounter by not using local real estate lending sources.
Reason 3 - Dumb types of loan qualification
If you are going to contact a real estate lender to get qualified for a home loan, this act is normal operating procedure within the Santa Clarita - Valencia CA Cities, then you are going to want the best approval possible.
Due to the heavy competition within the Santa Clarita real estate market currently, you are going to want a full loan approval with an underwriter approval bonus.
This is the most secure approval you can receive and is much different than a pre-approval or regular pre-qualification for a Santa Clarita - Valencia CA home loan. This one carries weight because the lender went all the way through the loan process and you were signed off on. The only thing left is having me find the right Santa Clarita CA and Valencia CA home for you.
Reason 4 - Dumb exceeding your comfort zone
Let us say for argument the real estate mortgage broker or bank approves you at an amount of $700,000.00 and you ask me to increase the range of your search to encompass those homes that are 50k more expensive because you are going to want to haggle.
In a tight real estate seller's market, most sellers are not going to play cat and mouse with you. I'm always willing to do what my clients want, as long as it does not place them in harm's way.
If a home is overpriced, that is an entirely other issue and will need to be dealt with by me and you by me submitting the proper paperwork to the listing agent justifying our lower than asking price offer.
Just don't violate the amount of where you are comfortable in financing. Most real estate sellers in the current Santa Clarita - Valencia CA real estate market have priced their homes spot on with the current market statistics. This is verifiable by me researching the days on market time frames and seeing that no monies were given in concessions, towards repairs and none toward price discounts.
Reason 5 - Dumb Lowball offers
Sometimes a low offer is justified. That has to be proven with fresh comps(comparable homes that have sold within the last <180 days) given to the agent to accompany our offer so the seller can see why we offered them less than asking price.
If you were a home seller and had an offer on your home which was less than you were asking, you'd want something to justify that offer? The same goes for the sellers that you and I will be approaching.
Reason 6 - Dumb Love Letters
I write a lot about real estate love letters. Letters from Homebuyers which will give you an edge over others in the current housing and real estate markets. These letters can help, but they are double-edged swords and you can get cut easily.
Stick to the facts related to the home you are buying. Don't make it an emotional matter and for heaven's sake, don't gush. If you make it too big of a deal the home sellers may think twice about selling you the home at the price you have offered, it's human nature.
Reason 7 - Dumb in escrow purchases
This comes up from time to time and makes home buyers cry. I have seen it more times than necessary. As part of my real estate crash for home buyers wanting to purchase in Southland, Santa Clarita, and Valencia CA real estate markets, it's a bad thing to run up any new or additional debt during escrow.
You have 30-45 days to close the transaction and the lender, the source you are using to borrow money to buy the home will be checking your credit throughout.
For example, if they see a credit card which you applied for from Williams Sonoma with a $20K credit limit and 1/2 was used on a bedroom set, you may not qualify for the home loan any longer.
The same goes for paying things off. Do not do anything different during escrow without asking your lender for permission and getting their response and approval in writing!
Believe it or not - buying stuff is not always the problem. Paying stuff off can be equally harmful. If you are going to change anything, ask the lender for permission before doing so.
Reason 8 - Dumb Closing Costs
A real estate seller has their closing costs - involving the commission for the buyer's agent you are hiring to represent you.
A real estate buyer has closing costs that have to be taken care of which have nothing to do with the home seller.
The home buyers closing costs are the following:
- The home buyers part of the escrow fees
- The home buyers portion of the title insurance fees
- The lender fee's for the home buyer
These can be as much as 3% to the homebuyer based on the purchase price.
Not accounting for them is going to create an issue and cause you not to be able to move forward with your Santa Clarita and Valencia CA real estate purchase.
If you cannot pay them yourself, there is a change the seller may allow you to finance them, but in a seller's real estate market, as we are in today within the Santa Clarita, Valencia CA and other southern California Cities, you'd be hard-pressed to find a seller willing to.
I'm Connor MacIvor and I want to be your Realtor. Please reach out to me after doing your research on what is being said by me and others about me online :) - in the same way, I would approach any service provider or product. Technology can be problematic, but I consider being well Guided in my search processes by my God.